In a program on CNBC, Ireland’s Prime Minister, Enda Kenny talked about the end of “Double Irish” and its effects on the economy. Kenny thinks that scrapping off double Irish tax avoidance scheme will not put a hurdle for tech giants like Apple Inc. (NASDAQ:AAPL). The companies will work with more clarity and focus. Double Irish is a tax avoidance scheme which was used by Apple Inc. (NASDAQ:AAPL) and other famous technology companies to avoid heavy tax liabilities.
Apple Inc. (NASDAQ:AAPL) has around 4,000 employees for its Ireland operations. Experts fear that end of tax avoidance strategy will hush off Apple Inc. (NASDAQ:AAPL) from the country because Double Irish strategy saved Apple billions of dollars in taxes. Kenny said that Ireland is not afraid of the ramifications. Apple will stay as the technology sector is expanding nor contracting. He thinks that there are multifarious opportunities for Apple Inc. (NASDAQ:AAPL). He said that tax loopholes quell the growth. The decision to deplete tax loopholes was in result of European Union’s pressure. European Commission threatened Ireland that if the government will not take any action against tax problems, it will launch a thorough investigations. Apple Inc. (NASDAQ:AAPL) is not happy with the strict policies of tax and regulations by EU.
Ireland can face insurmountable pressure to build up its technology market with these difficult tax environs. Apple Inc. (NASDAQ:AAPL)’s former chief executive John Sculley, speaking in the Dublin Web Summit, said that Ireland will lose its formidable edge of tax incentives for the companies which will pose some issues in the future.
Apart from Apple Inc. (NASDAQ:AAPL), many other companies will be facing problems after lifting of tax incentives from Ireland.
Carl Icahn‘s Icahn Capital hold around 52.8 million shares of Apple Inc. (NASDAQ:AAPL).