Twitter Also Has Tax-Saving Operations In Ireland
Twitter is one out of several tech companies that has operations set up in Ireland to avoid paying a lot in taxes. Apple is one of the most well known companies that has operations in Ireland, which helped them save a reported $74 billion in corporate taxes since moving some of their assets there. However, Twitter actually employs around 100 people in Dublin, Ireland and they are looking to expand there. Apple reportedly has a shell company in Ireland.
Twitter’s offices at 42 Pearse St. in Dublin is registered as “Twitter International Company.” The directors at the office are listed as California residents or are Irish attorneys at Matheson Ormby Prentice. Matheson Ormby Prentice is known for specializing in lowering taxes for American companies.
Twitter International’s “secretary” is listed as a corporate trust called Matsack. Matsack is a Matheson subsidiary that acts as the secretary for over 1,000 other companies.
In Twitter’s S-1, there are three other subsidiary listed: T.I. Sparrow I, T.I. Sparrow II and Twitter Netherlands B.V. These tax maneuvers are known as “Double Irish With A Dutch Sandwich.” For this scheme to work, companies need two Irish shells and one in shell in the Netherlands. The I.P. and revenues are offloaded to one of the Irish firms, which is bounced through the Netherlands and then handed off to the second Irish firm (which is usually headquartered in Bermuda or the Cayman Islands). Some of the other tech companies that use this technique or something similar are Facebook, LinkedIn, Google, and Microsoft.
[Source: Gawker]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry