Dr. Jim Stewart:

I do not think that it is the tip of the iceberg. What surprises me in one way, however, is that the Apple case is similar to the double-Irish arrangement. In the latter, the actual headquarters location in Bermuda, or wherever, was minimal. It was just a brass-plate operation. There were some legal differences involved between the two. It was not a branch involved but a separate company. Again, it was deemed to be located in two countries and bilocated, hence the double Irish. It is because Ireland passed legislation making the double Irish illegal for countries where one does not have a double-taxation treaty that the Commission did not investigate this particular case.

In the overall context, it is legally difficult to work out where a company is located. It sounds like a simple question but is very difficult and tricky, particularly for digital and Internet-based companies. That is one element with which the OECD has attempted to grapple. It has had some success but it is a huge area.