Scared money don’t make no money. Dr Dre is getting his Starbucks on and being smart with his corporate tax situation, check out the story below.
Dr Dre has reportedly based three of his companies in West Cork – one of Ireland’s towns that benefits from a generous corporate tax rate, thereby reducing his tax liability.
Dre’s headphone business empire Beats Electronics this year established three separate companies which share their address with O’Mahony Donnelly accountants, run by husband and wife Michael O’Mahony and Ann Donnelly, according to the Irish Examiner.
Mr O’Mahony declined to comment on the specifics of the firm’s relationship with Dr Dre’s Beats empire. But he said: “We set up limited companies, provide company secretarial services including providing a registered company address, as well as other accountancy and business advisory services.”
Dre’s Irish subsidiaries are owned by Irish-based Beats Electronics Holding Ltd, with the ultimate parent company based in California.
The corporate structure allows for money to be channelled between the separate companies in the form of royalty payments or licence fees to artificially but legitimately reduce profits as a means of reducing tax liabilities.
David Enright, who is an accountant for one of U2’s companies, is also a director of two of the Irish Beats subsidiaries. In 2006, U2 moved its publishing company to Amsterdam after the Government capped the artists’ tax exemption.
Will people protest in the same way as Starbucks?