Ireland-Malta tax loophole to close

Ireland and Malta will close a tax loophole that allows U.S. multinational corporations to dodge tax by channeling cash through Malta. Dubbed the “single malt,” the arrangement allowed American companies to place intellectual property in an Irish-registered company that is resident in Malta in order to substantially reduce their tax liabilities. Irish Minister for Finance Paschal Donohoe confirmed Tuesday that Revenue and the Maltese tax authorities had agreed to end the loophole in a deal. It will take effect once Ireland ratifies an OECD convention next year; Malta has already ratified the convention.