Organizations Save Millions in Taxes by Booking Sales in Ireland
The UK’s corporate tax rate, which is at 20pc is significantly higher than Ireland’s, which is only 12.5pc.
After recent studies of tax affairs, it was found that Microsoft saves €127m in taxes each year by booking sales through Ireland. This U.S. based company, founded by Bill Gates, has reportedly sent revenuers over £8bn of computer software through to Ireland to be sold to British shoppers. According to investigators, this is done to get lower tax rates.
Microsoft is not the only company being put under investigation of tax affairs. It was also discovered that Facebook intends to start routing UK sales through Ireland.
Google agreed to pay £130m to Britain in back taxes this past year. In past years, Google has been under pressure due to its system of channeling profits from Europe through Ireland and Bermuda to avoid the tax. Last month, police raided the Google headquarters in Paris to investigate tax evasion.
