The shennigans of Yahoo !

Yahoo was taken over in June 2017 by another huge USA corp. Verizon for $4.5 Billion. Thats a whole other story.
Now I just want to tell you a little of Yahoo’s structure. Yahoo Inc. has 58 registered subsidiaries, they don’t have to have a subsidiary in every country in which they operate, they can license another company in that jurisdiction to provide their service. What is interesting is how many of the 58 subsidiaries are is “strange” locations, specifically Tax Havens.
They have 8 in the Caribbean Sea, 7 in the Cayman Islands and 1 in the “boutique” Tax Haven of Nevis, a sister island of St Kitts.
This will give you a flavour of what you can achive by “doing business” in Nevis.
The Cayman Islands, a British Overseas Territoery, are 3 islands in the West Caribbean,just south of Cuba. The population is 61,000 and there are over 92,000 companies registered there. On income and profits from any source/activity earned outside the Cayman Islands there is No income tax, No corporation tax, No capital gains tax, No inheritance tax, No payroll tax, No property tax Etc.
Accountants and lawyers selling you on the advantages of having a company there refer to it as being “Tax Neutral”! After having paid No Taxes, you’re not off the hook though, the accountants and lawyers want their pound of flesh.
Back to Yahoo Inc. who just seem to be drawn like a fly into a spiders web when it comes to having subsidiaries in in Tax Havens, 3 in Netherlands/Netherlands Antilles (a favourite spot for U2’s profits), 2 in Switzerland, 2 in Singapore, 3 in Hong Kong and last but not least in our very own little Tax Haven, Ireland, where there have 7 subsidiaries!
Up until 9 June the most important one was “Overture Search Holdco.(Ireland)” registerted in Dublin, but tax resident in ??? you guessed it, in that British Overseas Territory, the Cayman Islands. Overture collected Millions from fees paid for the use of Yahoo’s Intellectual Property, Royalties. On 31/05/17 it paid E229 Mil to a company in Mauritius in exchange for acquiring more Intellectual Property Rights. Later that very same day Overture transferred “all its IP rights” to “Yahoo!Emae” based in Dublin.
As a result of all this legal and financial shenniganns Overture reckoned it had an “estimated gain” of E815 Mil. (Yahoo’s IP rights are not sold on the open market, so their value/worth can only be estimated, and who better to make that estimate than a Yahoo subsidiary!) Then on 09/06/2017 the day before Verizon acquired Yahoo, this E815 Mil gain was declared as a dividend payable to Yahoo Inc. You would think they’d be delighted to receive it…. as long as it was received anywhere but in USA where they’d have to pay Corp Tax, so they instructed it to be paid to a Netherlands subsidiary, where no tax would be paid since it was probably only in transit, heading to some other “No Tax Jurisdiction” np doubt.
As far as I know Overture has folded up its tent and disappeared; the shuffling of Millions earned from IP Royalities worldwide will now flow into Yahoo!Emae.
When John Gogarty was in a car with a couple of Developers on their way to deliver a “brown envelope” to Ray Burke, he asked “will we get a receipt for this?”, the response paraphased only slightly was ” You will in your f**k!” My question is, “will we get corporation taxes paid in Ireland as a result of these companies registered in Dublin making so much profit”? You can take it the answer is similar to that received by John Gogarty.

About tryingtobefair

More than a little interested in how we can all make the community we live in a better place. "The world has enough for everyone's need, but not enough for everyone's greed" Gandhi. Let's all learn what's enough.
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