Double Irish With A Dutch Sandwich
Doesn't this sound like it's some incredibly dirty sex act? Shockingly, it's...not.
Instead, the double Irish with a Dutch sandwich, also known as the double Irish arrangement, is a way that big corporations have been avoiding taxes in the U.S. since the biggest of big hair days (the '80s).
So how does this magic work? Corporations make subsidiary companies in these low-or-no-tax areas, and move all of their profits over there. As you might guess from the name, this particularly favorable method involves funneling profits through an Irish company, then a Dutch one, and then another Irish one, explaining the “sandwich” part. This Paperwork Olympics takes a lot of time and, well, paperwork—but it’s well worth it, saving companies from paying millions in taxes to the U.S.
Spoiler alert: the times of the double irish with a dutch sandwich are over...kind of. After international outrage at mega-corps like Google, Apple, Facebook, and other companies eating the sandwich, Ireland closed those loopholes in 2015...well, for everyone except those drinking the Silicon Valley Kool-Aid. Some companies, like the three mentioned above, have until 2020 to close up their sandwich shops in Ireland and the Netherlands. It was good (for them) while it lasted.
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Finance: What is a Derivative?23 Views
finance a la shmoop what is a derivative? well it's derived it's a something taken
from something else like a derivative of hot weather is thirst a derivative of [Girl takes sip of glass of water on a beach]
hunger is well you know crankiness that's diva thing you get there...
derivative of a 1/32 quarterback rating in the NFL is like serious wealth yeah
yeah discount double shmoop yeah look for it be on there with aaron
and a derivative of a stock or bond or other security is a something which
derives its value based on the performance of that underlying security
there are basically two flavors of derivative put options ie the right to [Ice cream flavors appear]
sell a security at a given price over a given time period and a call option, ie
right to buy a security at a given price over a given time period
well the price of that option is derived from the price of the security and a few
other factors like strike prices and duration and all that stuff
colonel electric the downgraded new version of General Electric is trading [Colonel Electric appears in a suit]
for 25 bucks a share a derivative of its share price is sold in the form of a
call option with a $30 strike price expiring about 90 days from now on the
third Friday of the end of that month well investors pay a price albeit
probably a small one for the right to then pay 30 bucks a share for colonel [Call option appears for colonel electric]
electric at any time in the next 90 ish days until that option expires making the bet
that the stock will go well above 30 bucks a share in that time period that
call option is thus a derivative of the colonel electric primary stock price got
it if you really want to get personal well here's the ultimate form of
derivative [Baby laying down]