Yahoo Moving Tax Base From Switzerland To Ireland
Pressure on Switzerland to abolish some of its corporate tax incentives has led to a number of organisations and companies to reconsider where they have their tax base. According to a study by Reuters, Yahoo is one such company, and they have taken a number of steps in recent months that indicates they are looking to move their tax operations from Switzerland to Ireland. Any decision to harmonise tax rates by the Swiss government would be likely to lead to a further departure of other global companies.
Tax loopholes and tax treaties have hit the headlines in recent months, as governments attempt to shore up what they consider to be leaking finances. Companies with global operations will typically try to divert money and accounts to those countries with the more favourable tax incentives for doing so. This means that they would pay less corporate tax on their income and profits, and global governments are attempting to stop this action.
Switzerland has traditionally been considered a tax haven for corporations. They have different tax rates for overseas companies than for Swiss companies, and this means that offshore organisations pay a lot less than onshore organisations. However, the EU has put a lot of pressure on the Swiss government to try and force them to harmonise these tax rates, thus pressuring companies to move their tax interests back to the countries where they do business.
Yahoo is only one of several high-profile organisations that has come under fire for its tax payment policies. Amazon, Apple, and Starbucks have had to endure considerable media pressure, as well as pressure from governments, because they allegedly pay less tax than their home treasuries consider to be fair and moral.
Yahoo has said that recent moves have been made in order to streamline its accounts, and they have not been driven by a desire to pay less tax and protect their profits. Tax experts refute this claim, stating that they are just one of a large number of organisations that are taking a similar stance and moving away from using the Alpine nation for their corporate taxes.