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Irish Legal Firm Guided Twitter On Tax Affairs

22 October 2013   (0 Comments)
Posted by: Author: Adrian Weckler
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Author: Adrian Weckler

TWITTER'S financial set-up in Ireland is back in focus with new details of how Irish legal firm Matheson guided the social networking giant through tax affairs here.

The company has been advised by Matheson on this.

A presentation by the Irish legal firm illustrating how the so-called 'double Irish' tax system works has been published on the US website Gawker.com.

Using arrows to illustrate how royalties are transferred from one unit to another, the diagram refers to US corporations that had "previously only a US domestic focus, looking to establish a new business structure for the exploitation of IP [intellectual property] outside the US [while] all R&D would continue in the US".

Twitter bosses have emphasised it is the quality of the Irish workforce, not the tax structure here, that has resulted in its decision to expand in Dublin.

"The material jurisdictions in which the company is subject to potential examination by taxing authorities include the United States, California and Ireland," said a regulatory document filed in advance of the social networking giant's expected €750m market flotation.

"The company believes that adequate amounts have been reserved in these jurisdictions. The company's 2007 to 2012 tax years remain subject to examination by the United States and California, and its 2011 to 2012 tax years remain subject to examination in Ireland."

Earlier this month, Twitter revealed it had racked up €324m in accumulated losses so far, with a €47m loss on €190m revenue in the first half of this year.

The company also disclosed that it makes 75pc of its advertising revenue in the US, despite that country only representing 30pc of its user base.

This article first appeared in independent.ie.


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