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Obama: U.S. companies magically becoming Irish

Staff writer |
President Barack Obama accused big U.S. companies of trying to play the system by magically becoming Irish through so-called tax inversion deals.

"I don't care if it's legal, it's wrong. It sticks you for the tab to make up for what they're stashing offshore.

"If you are basically still an American company but you simply change your mailing address in order to avoid paying taxes then you are really not doing right by the country and its people.

"If you simply acquire a company in Ireland or some other country to take advantage of the low tax rate, you start saying we are now magically an Irish company despite the fact that you may only have a hundred employees there and you've got 10,000 in the United States; you are just gaming the system. You are an American company, you continue to benefit in all kinds of ways from being an American company," Mr Obama said.

In the first six months Euro deals by U.S. helped drive the value of Irish mergers to a record 65 billion euros.

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