- 16 -
with respect to the unit 107 lease and option agreement.
B&L Ireland entered into additional leases with the IDA. On
or about April 27, 1983, it executed an agreement to lease unit
102 in the Waterford industrial estate to use as a temporary
storage facility for raw materials. In 1984, B&L Ireland leased
from the IDA a warehouse facility that had an approximate size of
6,000 square feet. In late 1987, it moved its sunglass assembly
operations to a new facility that had approximately 19,000 square
feet.16
B&L Ireland received additional financial incentives from
the Government of Ireland in the form of certain exemptions from
Ireland's corporation tax and its value added tax (VAT). With
respect to Ireland's corporation tax, Ireland generally exempted
from that tax income earned through export sales of goods manu-
factured in Ireland. Pursuant to that exemption, B&L Ireland was
relieved of its obligation to pay Ireland's corporation tax with
respect to substantially all, if not all, of its profits from its
sunglass assembly operations. With respect to Ireland's VAT,
Ireland generally exempted from that tax firms engaged in a
manufacturing business that were importing the goods used in that
business. Pursuant to that exemption, B&L Ireland was exempt
from VAT on items it purchased from B&L Inc. and B&L GmbH for use
16 It is unclear from the record whether B&L Ireland leased or
purchased the facility into which it moved its sunglass assembly
operations during 1987.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011