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Facebook Ireland is a separate entity and the taxes they are avoiding are the 25% flat corporate taxes in Ireland. This has nothing to do with US tax rates except that Ireland undercut the US and then the caymans undercut Ireland. It's a race that doesn't end until you hit bottom.
As long as the rate is above 0%, there will be people who skirt around it.
That this is considered a subsidiary is irrelevant. It's still a U.S. corporation avoiding repatriation of revenues after paying foreign taxes.
It's called the "Double Irish Arrangment" and it is used by US multinational corporations. In other words, the US is still getting screwed.
Quote:
Companies owe U.S. taxes on income they earn around the world after receiving credits for foreign taxes paid. Under U.S. tax law, they must pay those taxes only when they repatriate the income.
I like the idea of a personal exemption of 15,000 and a flat tax of 10% with no write offs. no child, no mortgage, no nothing. Same with corporate taxes 10% no write offs.
And what makes you think corporations still won't want to dodge paying the 10% tax?
The double Irish has nothing to do with avoiding repatriating foreign earned money to the U.S. It deals with avoiding foreign taxes, which is good for American investors as it allows for more money to be paid out to them .
if you want to discuss how normal corporate U.S. tax rates on foreign earned money are preventing repatriation you should start a different thread.
Accounts filed by Facebook Ireland this week show that the social media giant funneled £440m into an Irish sister company in 2011, which then shifted the money into a subsidiary in the Cayman Islands.
They are doing what any normal person would do - they just have the resources and structure to pull it off.
Do you understand the reasoning or logic for the tax system we have and why tax shelters goes against the grain, or spirit of the language of the constitution of this country?
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