Double Irish With A Dutch Sandwich

The Double Irish with a Dutch Sandwich is a tax avoidance strategy used by multinational corporations to reduce their tax liability. The strategy involves setting up two Irish subsidiaries, one of which is located in a tax haven. The profits of the company are then shifted to the Irish subsidiary in the tax haven, which is taxed at a lower rate. The Dutch subsidiary then pays a dividend to the parent company, which is taxed at a lower rate than if the profits had been earned directly by the parent company.

The Double Irish with a Dutch Sandwich is a complex tax avoidance strategy that can be difficult to understand. However, it is important to be aware of this strategy, as it can have a significant impact on the tax revenue of governments around the world.

Here is a more detailed explanation of how the Double Irish with a Dutch Sandwich works:

1. A multinational corporation sets up two Irish subsidiaries, one of which is located in a tax haven.
2. The profits of the company are then shifted to the Irish subsidiary in the tax haven, which is taxed at a lower rate.
3. The Dutch subsidiary then pays a dividend to the parent company, which is taxed at a lower rate than if the profits had been earned directly by the parent company.

The Double Irish with a Dutch Sandwich can result in a significant reduction in the tax liability of a multinational corporation. For example, a company that earns $100 million in profits could reduce its tax liability by $20 million by using this strategy.

The Double Irish with a Dutch Sandwich is not illegal, but it is controversial. Some people believe that it is unfair for multinational corporations to use this strategy to avoid paying taxes. Others argue that the Double Irish with a Dutch Sandwich is a legitimate tax avoidance strategy and that it should not be banned.

The Double Irish with a Dutch Sandwich has been the subject of much debate in recent years. In 2014, the European Union introduced new rules that were designed to make it more difficult for multinational corporations to use this strategy. However, the Double Irish with a Dutch Sandwich is still used by many multinational corporations today.

The Double Irish with a Dutch Sandwich is just one example of the many tax avoidance strategies that are used by multinational corporations. These strategies can cost governments billions of dollars in lost tax revenue. As a result, there is growing pressure on governments to take action to prevent multinational corporations from using these strategies.