Eircom.Net to move offshore for TAX purposes?

spongebob

Some persons here may be familiar witha tax loophole for Online services such as Eircom.Net as long as they move to the Azores or the Madeiras, see what Freeserve did a while back.

Having moved their business , they may now legimately charge 13% VAT instead of 21% VAT, this would immediately reduce Eircom residential DSL prices to €50.85 a month from the current €54.45 .

The government has been so inept in its handling of the SKY issue, (where SKY charges UK Vat to its Irish customers which then goes to the UK exchequer) that Eircom.Net retail are seriously considering legging it.....knowing that there ain't much the goovernment can do to bring 'em back not least because the goivernment is scared of the Independent turning on Fianna Fáil

The parent has already been transferred offshore, expect to see the various components of the business do a spot of 'Tax Shopping' any day now.

M

BKtje

Does that mean that our next bills will be charged at 13% VAT instead of 21% VAT (Eircom POTS rental+ calls?) or will Eircom still charge the full 21%.
Would 13% of this 21 go to UK govt. then 8% to themselves. (I'm sure they'd try something like that or raise prices so that it stays the same even tho VAT is lower.)

Tis a good loophole to lower prices without actually doing so then....

irishguy

they will probelly move offshore and still charge 21% VAT

spongebob

No

13% goes to the Madeira or Azores Government

The Network, (the lines) stay in Ireland and will be chared at 21% as before. The wholesale network will remain here too.

It is all part of the grand plan to separate out the Network and the Retail divisions and to move the Retail divisions beyond regulation as far as possible....seeing as they are offshore.

The beneficial ownership of Eircom has already gone to the UK .

Only Eircom.Net will go to Madeira according to what I hear, see an explanation of the scam Here

PwC, KPMG and Ernst & Young all say that many of their clients are now seriously looking at opening similar operations in Madeira.

M

dahamsta

Hmmm. I thought Freeserve was operating out of somewhere in North Africa. Or is that AOL, and Freeserve was complaining about it? Pot, kettle?

adam

Urban Weigl

AOL were operating out of North America (the U.S.), and thus were charging their customers 0% VAT. Freeserve were complaining about this.

dahamsta

Ah yes. It was Freeserve that threatened to bugger off to North Africa.

adam

Cabaal

Because freeserve complained etc, AOL now have servers in the UK and now pay VAT

spongebob

Originally posted by Cabaal
Because freeserve complained etc, AOL now have servers in the UK and now pay VAT

They pay VAT at 15% ... in Luxembourg.
Freeserve pay VAT at 13% in Madeira.

UK Vat is 17.5%