Getting rid of tax by moving
I suppose they’ll call this tax strategy a Single Irish with a Jersy cow. as another big U.S. company abandons the U.S. for greener tax pastures. A U.S. drug company acquired an Ireland based company which will allow it to move it’s tax base to Jersy, an island in the English Channel.
Or in the Mylan deal (in the 6th paragraph) which is following the same route (acquisition of a foreign target) to move to the Netherlands, perhaps they’ll call it a double Dutch sandwich.
Or Covidian in the 7th paragraph, which bought an Irish company and is moving its tax base to Ireland … another single Irish?
This is becoming so popular this technique has its own name … a tax inversion. This refers specifically to situations in which a company buys company based in another country, in these cases Ireland and the Netherlands (which have both played big roles in other famous tax cases) and moving its tax base to that country.
Here’s a little entrepreneurial nugget for those of you who are paying attention.
I’ve heard by way of the grapevine that Ireland is running out of companies. I hear they’re down to selling their children’s lemonade stands. If I were you, or if I were a more adventurous type, I would beat it the hell to Ireland and form a couple of companies and offer ‘em for sale far a billion apiece. Now that would be innovative entrepreneurialism.
I think it’s customary to say right about here … “Will the last person out please turn off the lights?”
The real message here is that unless you’re a billion dollar company or you’re using Ellis for your tax work, you are not doing enough to escape the tough taxes the U.S. lays down. Go back and read the post about the Apple tax strategy one more time, and ask yourself … is my tax preparer doing that for me? Or check out the pricing philosophy on our web site.