Taxes on tech firms are "going to go up and they are squealing like stuck pigs."
by Cyrus Farivar
Last year, the Organisation for Economic Co-operation and Development (OECD)—a group of the world’s top economies—decided it was time to crack down on international tax shenanigans through meaningful reform.
These legal loopholes allow major tech corporations to move money around on paper through a series of shell corporations in Ireland, Bermuda, and the Netherlands. The companies save big, and "best" of all, it’s currently legal! This widespread strategy of moving money around involves two specific tactics better known as the “Dutch Sandwich” and the “Double Irish.”
Starting February 3, the Task Force on the Digital Economy is set to convene at the OECD’s office in Paris to discuss the global corporate response to these potential plans to rein in questionable tax practices. Last week, the OECD published various corporate responses to its initial proposal—needless to say, companies don’t want to stop what they’re doing.
“This kind of tax planning, I believe, will end—the tax rate on the tech firms is going to go up, and they are squealing like stuck pigs,” Edward Kleinbard, a professor of tax law at the University of Southern California, told Ars.
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http://arstechnica.com/business/2014/01/silicon-valley-attempts-to-slow-new-global-tax-avoidance-reform-proposals/
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