Finance Bill ensures firms are resident for tax

The removal of a hugely controversial piece of tax legislation was outlined in the latest Finance Bill.

“Section 38 amends section 23A of the Taxes Consolidation Act 1997 to ensure that an Irish incorporated company cannot be ‘stateless’ in terms of its place of tax residence, as a result of a mismatch between Ireland’s company residence rules and those of a treaty partner country.”

Multinational companies were able to register entities in this country without making them tax resident. This was a vital component of a complex tax avoidance mechanism known as the “double Irish”. It came under huge criticism in the wake of US Senate hearings last June into the tax affairs of Apple.