Apple and Google about to get a kick in the loopholes

The long love affair that Apple has with Irish tax loopholes is about to end.

According to the Independent, Irish Finance Minister Michael Noonan is committed to a crackdown on big business tax avoidance and Jobs’ Mob and Google are going to be targets.

The Irish government is under pressure to do something about the low corporation tax rate and its popularity with global brands such as Apple, Facebook and Google.

While he has said that the 12.5 percent tax rate will not be touched,  Noonan has revealed new plan which will stop multinational corporations being “stateless” for tax purposes.

In his Budget 2014 there is a statement on international tax strategy which sets out Ireland’s objectives and commitments on global tax and avoidance matters.

He has promised to include a reform to ensure that no Irish registered company can be stateless for tax purposes.  Ireland is under a fair bit of pressure. 

The Germans have been pointing out that it seems wacko that it is a bad Irish joke, that they have to bail out the Irish economy when the country is ignoring pots of gold from the likes of Google and Apple.

Voters also are cross that they are expected to be austere and lose government services while Apple and Google are laughing all the way to the bank.

The new rules to stop stateless companies will apply from January 2015 so Apple and Google will have plenty of time to find a new tax haven.