Irish Legal Firm Guided Twitter On Tax Affairs
22 October 2013
Posted by: Author: Adrian Weckler
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.
presentation by the Irish legal firm illustrating how the so-called
'double Irish' tax system works has been published on the US website
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.
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.
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."
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.
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.