TAX HAVENS & EU
Dutch and Irish Tax Avoidance: A Closer Look The Dutch sandwich and Double Irish are two of the most well-known tax avoidance schemes used by multinational corporations. Let's delve deeper into each: The Dutch Sandwich * Key features: * Involves three entities: a parent company in a high-tax country, a subsidiary in a low-tax country (often the Netherlands), and a second subsidiary in another tax haven. * The parent company transfers intellectual property or other intangible assets to the Dutch subsidiary. * The Dutch subsidiary licenses these assets back to the parent company or other affiliates. * Royalty payments are made to the Dutch subsidiary, reducing the overall tax burden. * Example: A U.S. technology company might establish a subsidiary in the Netherlands to hold its patents. The Dutch subsidiary would then license these patents back to the U.S. parent company, generating royalty income that is taxed at a lower ra...