Dr. Dre has established three seperate subsidiaries of Beats Electronics in Ireland, in order to take advantage of their corporate tax rate.
Dr. Dre, always the savvy business man, has now located three of his companies in Ireland in order to take advantage of their corporate tax rate.
The music mogul and famed producer has seen a lot of success from his headphones line Beats By Dre. The empire from which the headphones stem, Beats Electronic, has now establishedÂ three different companies inÂ Clonakilty, Co Cork toÂ utilizeÂ the corporate tax rate offered there. This will help reduce his taxÂ liability, as the Irish Examiner reports.
The three business have a shared address withÂ OâMahony Donnelly accountants, who commented on helping out businessmen like Dr. Dre, "Since I established OâMahony Donnelly here in 2000 weâve worked with a number of multinational corporations to get them set up in Ireland. This has become a great niche for our firm." Although he declined to comment specifically on Dr. Dre's endeavors, he did add,Â "The low corporate tax rate is a big factor in attracting companies to set up in Ireland, but there are many other reasons."
It breaks down in this way:Â Dr. Dre's three companies based overseas includeÂ Â Beats Electronics Services Ltd and Beats Electronics International Ltd. Those three areÂ owned by Irish-based Beats Electronics Holding Ltd, with the ultimate parent company, Beats Electronics, based in California. By structuring his companies likeÂ this, Dre "allows for money to beÂ channeledÂ between the separate companies in the form of royalty payments or licence fees" whichÂ artificially butÂ legitimatelyÂ reduces profits, thusÂ reducingÂ taxÂ liability.
Dr. Dre is definitelyÂ taking very care of his finances and the business that gives him the most cash.Â HeÂ was recently named Forbes' highest paid musician of 2012, raking in $110 million this year, mainly due to Beats By Dre.