Taxation Terms: Double Irish With A Dutch Sandwich

17 Aug

Definition of ‘Double Irish With A Dutch Sandwich’

A tax avoidance  technique employed by certain large corporations, involving the use of a  combination of Irish and Dutch subsidiary companies to shift profits to low or  no tax jurisdictions. The double Irish with a Dutch sandwich technique involves  sending profits first through one Irish company, then to a Dutch company and  finally to a second Irish company headquartered in a tax haven. This technique  has allowed certain corporations to dramatically reduce their overall corporate  tax rates.

The double  Irish with a Dutch sandwich technique is just one of a class of similar  international tax avoidance schemes. Each involves arranging transactions  between subsidiary companies to take advantage of the idiosyncrasies of varied  national tax codes. These techniques are most prominently used by tech companies  because these firms can easily shift large portions of profits to other  countries by assigning intellectual property rights to subsidiaries abroad.


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