Every year, Irish subsidiaries of multinationals cancel debt previously contracted from related companies overseas to build up their ever-growing asset base here. As reported on numerous occasions by The Currency, it is typical for US-headquartered groups to lend money to their Irish units to finance the acquisition of manufacturing or data centre equipment, intellectual property – or financial instruments re-routing funds to other operational centres around the world. Then a few years later, the debt is often simply waived, with transactions routinely hitting the billion-dollar mark. Is the resulting gain for the Irish subsidiary a taxable profit? The Revenue Commissioners…

Want to read the full story?

Unlock this article – and everything else on The Currency – with an annual membership and receive a free Samsonite Upscape suitcase, retailing at €235, delivered to your door.

Subscribe

Cancel at any time.

Are you already a member? .