U2 goes Dutch to save on taxes
09 Aug 2006, AccountancyAge.com, AccountancyAge
http://www.accountancyage.com/aa/news/1789550/u2-goes-dutch-save-taxes
U2 has become the latest rock band to set up some of its operations in Holland in order to cut its tax bill – a move which has drawn some criticism given frontman Bono’s campaign to end debt relief for developing countries.
The Irish band has followed on from the footsteps of the Rolling Stones, which relocated its umbrella financial company to Holland last month.
The tax rate on royalty earnings in the Netherlands is only a few per cent, while Ireland has recently brought in tax changes which have imposed a cap of €250,000 (£168,000) on tax-free incomes for artists resident in the republic.
The Guardian quoted Irish Labour party's finance spokeswoman, Joan Burton as saying: ‘Having listened to Bono on the necessity for the Irish government to give more money to Ireland Aid ... I am surprised that U2 are not prepared to contribute to the exchequer on a fair basis along with the bulk of Irish taxpayers.’
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Visitor comments
Say it isn't so Bono!
Come on Bono, pay your taxes like the rest of us. I am a huge fan. Wish I could pick up and go to Amsterdam and pay no taxes, but I have to pay and so should you. If you are not going to pay your taxes then lower the prices on your tickets.
Posted by: Doug Johnson , 09 Aug 2006 | 00:00
They are the world's band, not Ireland's
A small portion of one of their companies is being relocated to Holland. Ireland's taxes on royalties is going from zero to 42%, which is rediculous.
If all, or even most, of the royalties on their stuff was made in Ireland it would be one thing. But they are a band of the whole world, selling out everywhere.
They are not evading taxes, not doing anything illegal; it's a business move.
Ireland still gets millions on everything else they do, and the band even are purchasing two floors of the tower on the river Liffey from the city of Dublin, so they aren't going anywhere. It sounds like it's an administrative, divisional move.
Bono and the band are still men of highest integrity, loyalty to Ireland, work ethic, etc. The are still relevant and giving us fresh work even now that they will pay great amounts of royalties on. We would do the same thing if we were in their shoes.
Posted by: sammi fredenburg , 13 Aug 2006 | 00:00