Dropbox sets up PO box in Ireland to handle non-US services

Dropbox has joined the ranks of tech companies domiciling services in Ireland. All non-US users of paid Dropbox services will now have their service contract with Dropbox Ireland, the company says. The secure document storage outfit makes a hand-on-heart promise that the change “to better serve you and the growing number of …

[MrDamage]

Better serves us? How?

OK, so moving non-US customers to Ireland theoretically gives us greater protection due to the EU data protection laws.

It also "helps" Dropbox's bottom line because of the favourable taxation rates Ireland grants.

But here is the kicker. Why do I still have to deal with US courts should I have any issue with your service?

[P. Lee]

Re: Better serves us? How?

>OK, so moving non-US customers to Ireland theoretically gives us greater protection due to the EU data protection laws.

Given the US' current stance with MS. Anyone who has assets in the US it doesn't wish to lose is subject to US law globally. It doesn't come down to law, it comes down to, "how much does your provider have to lose."

[Doctor Syntax]

Re: Better serves us? How?

"Given the US' current stance with MS."

It all comes down to the details of the relationship between the US & Irish businesses. In this case it doesn't look too good: US law, service "AS IS" (caps included!) and isn't Condi Rice still on the board?

[Mark 85]

So the rest of the world is unhappy but I'd bet that Ireland is very happy... I'm sure there's an object lesson in there for the rest of the world about taxes.

In some ways, government should operate like businesses as I see nothing wrong with Dropbox (and others) using existing laws to get the best tax rate. Hell, I would do it for my personal taxes if I could and I believe that every working person in most countries would if they could also.

[roomey]

It's all about the tax is it?

I may be wrong, but it is my understanding that if they want to avail of Ireland's low corporate tax, they only need to incorporate a new company and transfer any patents to it. Dropbox as we know it then licences the patents form this new company. The normal dropbox pays so much for patents from this new company that it barely turns a profit (so less tax to pay on it), and all profit is with the new company, in Ireland.

At no point to they need to physically locate their server in the Republic to take advantage of this. I think it is a bit of an easy statement to say "ahh yea, tax dodgers", without looking into the other reasons they may be locating in Ireland, ie. Highly educated work force, eurozone, friendly data rules, no GCHQ and NSA.

Yes I get tax is a factor, but could we please try to look beyond this at least sometimes? The tax argument is a bit shallow in fairness

[John Brown (no body)]

Re: It's all about the tax is it?

"they may be locating in Ireland, ie. Highly educated work force, eurozone, friendly data rules, no GCHQ and NSA."

...except, of course, most if not all of Irelands connectivity goes via the UK or USA.