How Abbott Labs devised its formula for ‘single Malt’ taxation

Use of Malta as tax haven to replace ‘double Irish’ comes as State under OECD scrutiny

Because of the way Malta allows companies value intellectual property, Christian Aid calculates that at least €477 million in earnings from 2019 on can be sheltered from Irish and Maltese tax.

Because of the way Malta allows companies value intellectual property, Christian Aid calculates that at least €477 million in earnings from 2019 on can be sheltered from Irish and Maltese tax.

In recent years, efforts by governments to close off loopholes allowing multinationals to cut their tax bills have resembled a game of whack a mole – hit one on the head and another soon appears.

However the latest news, from research by Christian Aid, that Abbott Laboratories is using a tax structure involving Ireland and Malta is surprising, as it involves an arrangement which the Government had tried to close off in 2018. It also comes at a bad time for Ireland, under pressure to sign up to a new OECD tax regime designed to reduce these types of opportunities by tightening rules and imposing an agreed global minimum tax rate.

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