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How Google-Apple-Facebook Avoid Paying Taxes

SHADY

SHAMROCK

SHENANIGANS





DOUBLE



IRISH



GOLD





HOW THE BIG THREE U.S. TECH COMPANIES

ARE STASHING THEIR OVERSEAS POTS O'GOLD





You may wonder how the richest companies in the U.S. keep stuffing their pockets despite a rough



economy for the rest of us. For many of them, the secret is in a trick that sends profits overseas rather



than being taxed in the U.S., even though the companies are based here, helping them pay a



fraction of a percentage point on foreign profits through a scheme



nicknamed Double Irish.





WHAT THEY'RE (NOT) PAYING



EFFECTIVE RATES ON FOREIGN PROFITS VS. NATIONAL CORPORATE TAX RATES





U.S. corporate

tax rate



0.3% f





0.1% Google 35% UK corporate

tax rate



1.9 Apple 28%





DOUBLE IRISH DEFINED





THE BIG THREE HAVE STASHED BILLIONS THANKS TO THE LEGAL



TAX-AVOIDANCE SCHEME NICKNAMED DOUBLE IRISH.



A TAX-AVOIDANCE protocol officially known as transfer

pricing, Double Irish allows a U.S.-based company to avoid

paying income taxes here in the U.S. on profits earned overseas

by selling or licensing rights to patents or intellectual property

to foreign subsidiaries.



THE TECHNIQUE is employed mostly by huge corporations and

has allowed some companies (including Google, Facebook and

Apple) to cut billions off their tax bills.





HOW DOES IT WORK?



The scheme is called DOUBLE IRISH because it requires two Irish companies.





The first Irish company

is legally based offshore,

in the Cayman Islands

or Bahamas, for instance.





SECOND IRISH

COMPANY







The fist Irish company licenses

BIG TECH the patent rights to a second

COMPANY Irish company, which is a tax

resident of Ireland.







LEGALLY BASED The second Irish company

FIRST IRISH receives income but its taxable

COMPANY profits are low because the

royalties or fees paid to the

first Irish company are

deductible expenses.





PUT TO A GOOD USE?



COLLECTIVELY, APPLE, FACEBOOK AND GOOGLE

HAVE SAVED ABOUT $8 BILLION IN RECENT YEARS



How might that money have been put to use here at home? As we're enduring massive federal budget cuts,

that money could...





...PAY FOR THE FEDERAL GOVERNMENT'S ENTIRE SHARE

OF THE CHIDREN'S HEALTH INSURANCE PROGRAM,

WHICH COVERS ABOUT

4 MILLION

KIDS



=100,000





...PROVIDE

IMMUNIZATIONS 6.5 MILLION KIDS

THROUGH AGE 6 FOR





=100,000





...FUND THE SALARIES OF NEARLY ...BUY A YEAR'S WORTH ...PAY FOR THE ENTIRE CALIFORNIA

200,000 770,416 4 YEARS

ELEMENTARY SCHOOL TEACHERS FAMILIES OF FOUR; THAT'S MORE

THAN THE POPULATION OF CHICAGO





=10,000 =20,000 =12 MONTHS





WHAT WOULD THAT MEAN

FOR YOUR FAMILY?



THE AVERAGE AMERICAN TAKES HOME ABOUT $37,000 AFTER TAXES, but what if we were all paying

our taxes like Apple does? Paying a 0.7% rate would save you about $3.575.

That's enough for a family of four to...





... FLY ROUND-TRIP ...PAY OFF A NEW, ... INCREASE WHAT ...SAVE UP A DOWN



TO YOU SPEND ON PAYMENT ON A



PARIS $25,000 CLOTHES BY $175,000



CAR IN ABOUT HOUSE IN ABOUT



THREE AND A FIVE YEARS



HALF YEARS





While you're busy working hard for your paycheck only to see a huge chunk



of it head straight to the tax man, billionaire corporations are



pocketing millions with a tax-avoidance strategy.





Do you think that's fair? SHAMROCK SHADY SHENAN HGANS DOUBLE IRISH GOLD HOW THE BIG THREE U.S. TECH COMPANIES ARE STASHING THEIR OVERSEAS POTS O╩╗GOLD You may wonder how the richest companies in the U.S. keep stuffing their pockets despite a rough economy for the rest of us. For many of them, the secret is in a trick that sends profits overseas rather than being taxed in the U.S., even though the companies are based here, helping them pay a fraction of a percentage point on foreign profits through a scheme nicknamed Double Irish. WHAT THEY'RE (NOT) PAYING EFFECTIVE RATES ON FOREIGN PROFITS VS. NATIONAL CORPORATE TAX RATES U.S. corporate tax rate 0.3 6 0.1cogle 35/% 28% UK corporate tax rate 1.9% DOUBLE IRISH DEFINED THE BIG THREE HAVE STASHED BILLIONS THANKS TO THE LEGAL TAX-AVOIDANCE SCHEME NICKNAMED DOUBLE IRISH. A TAX-AVOIDANCE protocol officially known as transfer pricing, Double Irish allows a U.S.-based company to avoid paying income taxes here in the U.S. on profits earned overseas by selling or licensing rights to patents or intellectual property to foreign subsidiaries. THE TECHNIQUE is employed mostly by huge corporations and has allowed some companies (including Google, Facebook and Apple) to cut billions off their tax bills. VIN HOW DOES IT WORK? The scheme is called DOUBLE IRISH because it requires two Irish companies. The first Irish company is legally based offshore, in the Cayman Islands or Bahamas, for instance. SECOND IRISH COMPANY The first Irish company licenses the patent rights to a second Irish company, which is a tax resident of Ireland. BIG TECH COMPANY LEGALLY BASED The second Irish company receives income but its taxable profits are low because the royalties or fees paid to the first Irish company are deductible expenses. FIRST IRISH COMPANY PUT TO A GOOD USE? COLLECTIVELY, APPLE, FACEBOOK AND GOOGLE HAVE SAVED ABOUT $8 BILLION IN RECENT YEARS. How might that money have been put to use here at home? As we're enduring massive federal budget cuts, that money could. ... PAY FOR THE FEDERAL GOVERNMENT'S ENTIRE SHARE OF THE CHILDREN'S HEALTH INSURANCE PROGRAM, WHICH COVERS ABOUT 4 MILLION KIDS =100,000 6.5 MILLION KIDS PROVIDE IMMUNIZATIONS THROUGH AGE 6 FOR =100,000 ... FUND THE SALARIES OF NEARLY BUY A YEAR'S WORTH PAY FOR THE ENTIRE CALIFORNIA OF GROCERIES FOR 200,000 HIGHWAY PATROL FOR 770,416 4 YEARS ELEMENTARY SCHOOL TEACHERS FAMILIES OF FOUR; THAT'S MORE 111111* THAN THE POPULATION OF CHICAGO =10,000 =20,000 =12 MONTHS WHAT WOULD THAT MEAN FOR YOUR FAMILY? THE AVERAGE AMERICAN TAKES HOME ABOUT $37,000 AFTER TAXES, but what if we were all paying our taxes like Apple does? Paying a 0.7% rate would save you about $3,575. That's enough for a family of four to . SAVE UP A DOWN ... INCREASE WHAT YOU SPEND ON CLOTHES BY FLY ROUND-TRIP PAY OFF A NEW, TO PAYMENT ON A PARIS PARIS 325.000 .000 ABOUT 30% SI75,000 CAR IN ABOUT THREE AND A HALF YEARS HOUSE IN ABOUT FIVE YEARS While you're busy working hard for your paycheck only to see a huge chunk of it head straight to the tax man, billionaire corporations are pocketing millions with a tax-avoidance strategy. Do you think that's fair? SOURCES http://quickfacts.census.gov/qfd/states/00000.html http://www.aei-ideas.org/2012/09/romney-still-paid-higher-ave- rage-effective-income-tax-rate-than-80-of-americans-higher-total-rate-than-60/ http://motherboard.vice.com/blog/how-apple-and-the-rest-of-the-tech-giants-avoid-billions-in-taxes--2#ixzz2M8P6dbj3 http://www.independent.ie/business/world/google-avoided-2bn-taxes-worldwide-in-2011-28946072.html#sthash.YTUPCX2C.dpuf http://www.huffingtonpost.com/2012/12/28/facebook-foreign-taxes-profit_n_2376055.html http://motherboard.vice.com/blog/how-apple-and-the-rest-of-the-tech-giants-avoid-billions-in-taxes--2 http://milkshake-factory.blogspot.com/2012/11/double-irish-dutch-sandwich-how.html http://www.investopedia.com/terms/d/double-irish-with-a-dutch-sandwich.asp#ixzz2M7ffcDAf http://www.payscale.com/research/US/AIL_K-12_Teachers/Salary http://www.statehealthfacts.org/comparetable.jsp?cat=4&ind=235 http://www.cnpp.usda.gov/Publications/FoodPlans/2012/CostofFoodDec2012.pdf http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1447363/ http://www.lao.ca.gov/analysis/2010/transportation/trans_anl10.pdf Expedia.com ve. visualeconomics

How Google-Apple-Facebook Avoid Paying Taxes

shared by punkrobby on Mar 14
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Big corporations must pay a lot in taxes right? Wrong. See how these sneaky corporations are pocketing almost ALL their earnings. Double Irish Deception: How Google-Apple-Facebook Avoid Paying Taxes ...

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