Taxes are an immutable fact of our lives. But perhaps even taxes can create opportunities for people with a certain income. A transfer pricing method between tax evasion and tax avoidance. Double Irish, Sandwich Dutch method is one of them.

This method is a method of reducing the tax burden. tax planning strategy. With this strategy, it is possible to reap millions of dollars in tax benefits.

It is known that this method was first developed by Apple’s accountants.

We don’t say for nothing that big brands let the devil wear their shoes inside out. This method, which aims to provide tax benefits to the company, in the 80s is being developed.

This method, which is known to have been first developed by Apple; Google, Microsoft and Amazon It is also used by technology companies such as

Apple needs a total of three companies to use this technique.

1. First Irish company with a patent
2. Second Irish company registered in a tax haven
3. Dutch company

That is the main reason for choosing Ireland and the Netherlands tax and trade laws offer significant advantages over the United States.

The proceeds from the first US sales will be transferred to the first Irish company.

First Irish company, owned by Apple because it owns intellectual property rights That is why it pays the Irish company large royalties for sales in America.

This payment is made on such a large scale that the company makes virtually no profit in America. In this way, Apple transfers its profits to Ireland.

The reason for this lies in Ireland rather than the 35% tax in the US. 12.5% To provide tax benefit by paying the tax.

Okay, we sent the money from America to Ireland; Than what?

Under Irish law, if the director of the company lives in another country, the profit is the amount in which the manager lives. can be transferred to that country.

In addition, under Irish law, companies registered in Ireland are based in the country. not required.

In the light of this information, the real magic of tax avoidance is revealed We move on to the second stage.

In this phase, the second Irish company takes the stage.

Countries we consider tax havens, corporations or none or very little They provide tax benefits to large corporations because they collect taxes.

Thanks to the Irish laws mentioned above, the company transfers its profits to the subsidiary, which is the second company in tax haven countries.

The second Irish company managed from these countries almost always falls into the tax haven country’s tax bracket. pays no taxes.

In other words, although the second company is considered an Irish company under US law; Under Irish law as a tax haven is seen as a land business We can say that Apple is eating the fruits of this situation.

The money transferred to the second Irish company is sent to the third company, the Dutch company.

Because no tax is levied on money transfers between companies that are members of the European Union, this money transfer between Dutch and Irish companies also falls under the scheme. is not taxable.

For this reason, the proceeds from sales outside the US are transferred via the second company to the third company, the Dutch company.

third company in the Netherlands, works as an intermediary and sends the money transferred to him tax-free to the first Irish company to own the patent.

Then the money is sent back through the first company to the second Irish company registered in the tax haven country, and as a result, Apple receives tax-free money. manages to keep the profit.