Editing Corporate haven (section)

===Encoding IP–based BEPS tools===
{{see also|Ireland as a tax haven#Captured state}}
The creation of IP-based BEPS tools requires advanced legal and tax structuring capabilities, as well as a regulatory regime willing to carefully encode the complex legislation into the jurisdiction's statute books (note that BEPS tools bring increased risks of tax abuse by the domestic tax base in corporate tax haven's own jurisdiction, see {{slink||Irish Section 110 SPV}} for an example).<ref name="oxf">{{cite web| url=https://maketaxfair.net/decorrespondent-reveals-netherlands-became-tax-haven/| title=De Correspondent Reveals How the Netherlands Became Tax Haven| publisher=Oxfam |work=De Correspondent| date=May 2017| access-date=2018-05-21| archive-url=https://web.archive.org/web/20190430203208/https://maketaxfair.net/decorrespondent-reveals-netherlands-became-tax-haven/| archive-date=2019-04-30| url-status=live}}</ref><ref name="dut"/><ref name="dut5">{{Cite web|title=The Professionals: Dealing with the enablers of tax avoidance and financial crime|url=https://www.taxjustice.net/wp-content/uploads/2017/11/The-Enablers-of-Tax-Avoidance-TJN-Briefing.pdf|publisher=[[Tax Justice Network]]|date=November 2017|author=George Turner|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180514141354/https://www.taxjustice.net/wp-content/uploads/2017/11/The-Enablers-of-Tax-Avoidance-TJN-Briefing.pdf|archive-date=2018-05-14|url-status=dead}}</ref>  Modern corporate tax havens, therefore, tend to have large global legal and accounting professional service firms in-situ (many classical tax havens lack this) who work with the government to build the legislation.<ref name="econ"/>  In this regard, havens are accused of being '''captured states''' by their professional services firms.<ref>{{cite news|url=https://www.theguardian.com/business/2011/jan/09/explainer-what-is-tax-haven|quote=This political capture produces one of the great offshore paradoxes: these zones of ultra-freedom are often highly repressive places, wary of scrutiny and intolerant of criticism.|title=Explainer: what is a tax haven? The most important feature of a secrecy jurisdiction is that local politics is captured by financial services interests|newspaper=The Guardian|date=9 January 2011}}</ref><ref>{{cite web|url=https://www.taxjustice.net/tag/captured-state/|title=Tax Justice Network: Captured State|publisher=Tax Justice Network|date=November 2015|access-date=2018-06-20|archive-url=https://web.archive.org/web/20180620154719/https://www.taxjustice.net/tag/captured-state/|archive-date=2018-06-20|url-status=dead}}</ref><ref name="amzn">{{cite news|title=Revealed: Project Goldcrest, how Amazon worked with the Luxembourg Government to avoid huge sumes in tax with IP|url=https://www.theguardian.com/technology/2016/feb/18/revealed-project-goldcrest-amazon-avoid-huge-sums-tax|newspaper=The Guardian|date=18 February 2016|access-date=21 May 2018|archive-url=https://web.archive.org/web/20190430202123/https://www.theguardian.com/technology/2016/feb/18/revealed-project-goldcrest-amazon-avoid-huge-sums-tax|archive-date=30 April 2019|url-status=live|df=dmy-all}}</ref><ref name="caid"/>  The close relationship between Ireland's [[International Financial Services Centre, Dublin|International Financial Services Centre]] professional service firms and the State in Ireland, is often described as the "[[Put on the green jersey|green jersey agenda]]".  The speed at which Ireland was able to replace its [[double Irish]] IP-based BEPS tool, is a noted example.<ref name="xx">{{cite news|title = Multinationals replacing 'Double Irish' with new tax avoidance scheme|url = https://www.independent.ie/business/irish/new-loophole-to-replace-the-double-irish-tax-strategy-30728951.html|newspaper = The Irish Independent|date = 9 November 2014|access-date = 13 May 2018|archive-url = https://web.archive.org/web/20180612142530/https://www.independent.ie/business/irish/new-loophole-to-replace-the-double-irish-tax-strategy-30728951.html|archive-date = 12 June 2018|url-status = live|df = dmy-all}}</ref><ref>{{cite news|title = Three years of silence on 'Single Malt' tax loophole raises questions|url = https://www.irishtimes.com/business/economy/three-years-of-silence-on-single-malt-tax-loophole-raises-questions-1.3293313?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fthree-years-of-silence-on-single-malt-tax-loophole-raises-questions-1.3293313|newspaper = The Irish Times|date = 16 November 2017|access-date = 13 May 2018|archive-url = https://web.archive.org/web/20180612135949/https://www.irishtimes.com/business/economy/three-years-of-silence-on-single-malt-tax-loophole-raises-questions-1.3293313?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fthree-years-of-silence-on-single-malt-tax-loophole-raises-questions-1.3293313|archive-date = 12 June 2018|url-status = live|df = dmy-all}}</ref><ref>{{Cite web|title = The Double Irish is dead, long live the 'knowledge-development box'|url = http://www.thejournal.ie/double-irish-dead-1723096-Oct2014/|publisher = journal.ie|date = 14 October 2014|access-date = 13 May 2018|archive-url = https://web.archive.org/web/20180514064844/http://www.thejournal.ie/double-irish-dead-1723096-Oct2014/|archive-date = 14 May 2018|url-status = live|df = dmy-all}}</ref>

{{quote| It was interesting that when [Member of European Parliament, MEP] Matt Carthy put that to the [Finance] Minister's predecessor ([[Michael Noonan (Fine Gael politician)|Michael Noonan]]), his response was that this was very unpatriotic and he should wear the "green jersey". That was the former Minister's response to the fact there is a major [[loophole]], whether intentional or unintentional, in our tax code that has allowed large companies to continue to use the double Irish [the "single malt"].|author=[[Pearse Doherty]] TD, [[Sinn Féin]] Deputy Leader, "[[Dáil Éireann]] Debate, 23 November 2017".<ref name="pearse">{{cite web|url=https://www.oireachtas.ie/en/debates/debate/dail/2017-11-23/18/|title=Dáil Éireann debate - Thursday, 23 Nov 2017|publisher=House of the Oireachtas|date=23 November 2017|access-date=4 June 2018|archive-url=https://web.archive.org/web/20190416113155/https://www.oireachtas.ie/en/debates/debate/dail/2017-11-23/18/|archive-date=16 April 2019|url-status=live|df=dmy-all}}</ref>}}

[[File:Enda Kenny Feargal O'Rourke Taken at IBEC 2014 Conference Flickr.jpg|thumb|260px|Irish [[Taoiseach]] [[Enda Kenny]] and PwC (Ireland) Managing Partner [[Feargal O'Rourke]]]]

It is considered that this type of legal and tax work is beyond the normal trust-structuring of [[offshore magic circle]]-type firms.<ref name="appley">{{cite news|title=Appleby, the offshore law firm with a record of compliance failures|url=https://www.irishtimes.com/business/appleby-the-offshore-law-firm-with-a-record-of-compliance-failures-1.3280860|newspaper=The Irish Times|date=November 2017|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180829210210/https://www.irishtimes.com/business/appleby-the-offshore-law-firm-with-a-record-of-compliance-failures-1.3280860|archive-date=2018-08-29|url-status=live}}</ref>  This is substantive and complex legislation that needs to integrate with tax treaties that involve G20 jurisdictions, as well as advanced accounting concepts that will meet U.S. GAAP, SEC and IRS regulations (U.S. multinationals are leading users of IP-based BEPS tools).<ref>{{cite web|title=Tax haven networks and the role of the Big 4 accountancy firms|author1=Alex Cobham|author2=Chris Jones|author3=Yama Temouri|url=https://www.taxjustice.net/wp-content/uploads/2017/11/JWB-Big-4-Jones-Temouri-Cobham-2017.pdf|publisher=Journal of Business|quote=Our key findings demonstrate that there is a strong correlation and causal link between the size of an MNE's tax haven network and their use of the Big 4|date=2017|access-date=2018-06-28|archive-url=https://web.archive.org/web/20180628153026/https://www.taxjustice.net/wp-content/uploads/2017/11/JWB-Big-4-Jones-Temouri-Cobham-2017.pdf|archive-date=2018-06-28|url-status=dead}}</ref><ref name="ukipo">{{Cite web|title = Hidden Value: A study of the UK IP Valuation Market|url = https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/647086/IP-Valuation-Market.pdf|publisher = The UK Intellectual Property Office|date = February 2017|access-date = 2018-05-18|archive-url = https://web.archive.org/web/20180519041315/https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/647086/IP-Valuation-Market.pdf|archive-date = 2018-05-19|url-status = live}}</ref>  It is also why most modern corporate tax havens started as [[financial centres]], where a critical mass of advanced professional services firms develop around complex financial structuring (almost half of the main 10 corporate tax havens are in the 2017 top 10 [[Global Financial Centres Index]], see {{slink||Corporate tax haven lists}}).<ref name="dut3">{{Cite web|title=Richard Brooks on how accountants got away with murder in the U.K.|url=https://www.tcij.org/events/2018-01-16/logancij-richard-brooks-how-accountants-got-away-murder|author=Richard Brooks|publisher=[[Centre for Investigative Journalism]]|date=January 2018|access-date=2018-05-16|archive-url=https://web.archive.org/web/20180517005207/https://www.tcij.org/events/2018-01-16/logancij-richard-brooks-how-accountants-got-away-murder|archive-date=2018-05-17|url-status=dead|author-link=Richard Brooks (journalist)}}</ref><ref>{{cite news|title=Ireland actively facilitates firms in avoiding tax, report finds|url=https://www.irishtimes.com/business/economy/ireland-actively-facilitates-firms-in-avoiding-tax-report-finds-1.3314401|newspaper=The Irish Times|date=4 December 2017|access-date=16 May 2018|archive-url=https://web.archive.org/web/20180612141437/https://www.irishtimes.com/business/economy/ireland-actively-facilitates-firms-in-avoiding-tax-report-finds-1.3314401|archive-date=12 June 2018|url-status=live|df=dmy-all}}</ref><ref name="dut4">{{Cite web|title=How Ireland became an offshore financial centre|url=https://www.taxjustice.net/2015/11/11/how-ireland-became-an-offshore-financial-centre/|author=Nicholas Shaxson|publisher=[[Tax Justice Network]]|date=November 2015|access-date=2018-05-16|archive-url=https://web.archive.org/web/20180612141245/https://www.taxjustice.net/2015/11/11/how-ireland-became-an-offshore-financial-centre/|archive-date=2018-06-12|url-status=dead|author-link=Nicholas Shaxson}}</ref>

{{quote|"Why should Ireland be the policeman for the US?" he asks. "They can change the law like that!" He snaps his fingers. "I could draft a bill for them in an hour." "Under no circumstances is Ireland a tax haven. I'm a player in this game and we play by the rules." said PwC Ireland [[International Financial Services Centre, Dublin|International Financial Services Centre]] Managing Partner, [[Feargal O'Rourke]]|author=Jesse Drucker, Bloomberg, "Man Making Ireland Tax Avoidance Hub Proves Local Hero", 28 October 2013<ref name="for0"/>}}

{{quote|That is until the former venture-capital executive at ABN Amro Holding NV [[Joop Wijn]] becomes [Dutch] State Secretary of Economic Affairs in May 2003. It's not long before the Wall Street Journal reports about his tour of the US, during which he pitches the new Netherlands tax policy to dozens of American tax lawyers, accountants and corporate tax directors. In July 2005, he decides to abolish the provision that was meant to prevent tax dodging by American companies [the [[Dutch Sandwich]]], in order to meet criticism from tax consultants.|source=[[Oxfam]]/''[[De Correspondent]]'', "How the Netherlands became a Tax Haven", 31 May 2017.<ref name="oxf"/><ref name="dec">{{cite web| url=https://decorrespondent.nl/6825/zo-werd-nederland-het-grootste-belastingparadijs-voor-amerikaanse-multinationals/410600865675-af3e00af| title=Zo werd Nederland het grootste belastingparadijs voor Amerikaanse multinationals| work=De Correspondent| date=1 June 2017| access-date=21 May 2018| archive-url=https://web.archive.org/web/20190430203157/https://decorrespondent.nl/6825/zo-werd-nederland-het-grootste-belastingparadijs-voor-amerikaanse-multinationals/410600865675-af3e00af| archive-date=30 April 2019| url-status=live| df=dmy-all| last1=Frederik| first1=Jesse}}</ref>}}

The EU Commission has been trying to break the close relationship in the main EU corporate tax havens (i.e. Ireland, the Netherlands, Luxembourg, Malta and Cyprus; the main [[Conduit and Sink OFCs]] in the EU-28, post [[Brexit]]), between law and accounting advisory firms, and their regulatory authorities (including taxing and statistical authorities) from a number of approaches:
{{ordered list|type=lower-roman
| EU Commission State aid cases, such as the [[EU illegal State aid case against Apple in Ireland|€13 billion fine on Apple in Ireland]] for Irish taxes avoided, despite protests from the Irish Government and the Irish [[Revenue Commissioners]];<ref name="revv">{{cite news|url=https://www.irishtimes.com/business/technology/revenue-insists-it-collected-all-taxes-apple-owed-1.2772934?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Ftechnology%2Frevenue-insists-it-collected-all-taxes-apple-owed-1.2772934|title=Irish Revenue insists it collected all taxes Apple owed in Ireland|newspaper=The Irish Times|date=30 August 2016|access-date=15 May 2018|archive-url=https://web.archive.org/web/20180427184357/https://www.irishtimes.com/business/technology/revenue-insists-it-collected-all-taxes-apple-owed-1.2772934?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Ftechnology%2Frevenue-insists-it-collected-all-taxes-apple-owed-1.2772934|archive-date=27 April 2018|url-status=live|df=dmy-all}}</ref>
| EU Commission regulations on advisory firms, the most recent example being of the new disclosure rules on regarding "potentially aggressive" tax schemes from 2020 onwards.<ref>{{cite news|url=https://www.ft.com/content/d9289174-26c4-11e8-b27e-cc62a39d57a0|title=Advisers face tighter EU rules on tax schemes|newspaper=Financial Times|date=13 March 2018|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180514065623/https://www.ft.com/content/d9289174-26c4-11e8-b27e-cc62a39d57a0|archive-date=14 May 2018|url-status=live|df=dmy-all}}</ref>
}}