Ireland has proposed to close a tax loophole used by Apple to protect $40bn (£25bn) from taxation, as part of the country’s 2014 budget groundwork.
The latest move comes in the wake of tech firms including Google, Amazon and Apple being fired over their practise of transferring large portions of their profits into their Irish units, which had no confirmed tax residency across the world.
Ireland’s Department of Finance revealed that it intended to ban a firm to have no tax domicile, while firms can nominate any country as their tax residence including Bermuda.
Irish government said in a statement: "The second measure to be included in the Finance Bill is a change to our company residence rules aimed at eliminating mismatches – that can exist between tax treaty partners in certain circumstances – being used to allow companies to be ‘stateless’ in terms of their place of tax residence."
Google and Microsoft also legally channel money to their subsidiaries in Bermuda where they pay no tax, while they claim to be adhering to tax laws in every country they operate.
Ireland Finance Minister Michael Noonan said the country was committed to reform.
"Let me be crystal clear. Ireland wants to be part of the solution to this global tax challenge, not part of the problem," Noonan said.
