Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Google Moved $23 Billion To Bermuda Tax Haven In 2017


Butifldrm
 Share

Recommended Posts

Google Moved $23 Billion To Bermuda Tax Haven In 2017

Profile picture for user Tyler Durden
Fri, 01/04/2019 - 06:40

When it comes to taking advantage of European tax loopholes, Google and its parent company Alphabet may have just superseded Apple in the eyes of EU regulators.

Because in a recent filing, Google disclosed a "totally legal" tax-avoidance scheme involving a soon-to-be-phased-out strategy known as the "Double Irish, Dutch Sandwich."

Google

While it may sound like an exotic menu item from a Midtown Irish pub, the DIDS is so much more than that: The strategy involves using a Netherlands-based subsidiary to shift royalties paid in Europe - Google EU is headquartered in Dublin - to Google Ireland Holdings, the company's Bermuda-based affiliate. According to a Google filing with the Dutch Chamber of Commerce, the company funneled 19.9 billion euros ($22.7 billion) through the subsidiary to its Bermuda tax haven in 2017, around 4 billion euros ($4.5 billion) more than 2016, Reuters reported.

The arrangement has allowed Google to reduce its foreign tax bill to single-digit levels in some places - roughly one-quarter of the average rate for overseas markets.

But don't worry. Because, as Google reminds us, this is all legal.

"We pay all of the taxes due and comply with the tax laws in every country we operate in around the world,"Google said in a statement.

"Google, like other multinational companies, pays the vast majority of its corporate income tax in its home country, and we have paid a global effective tax rate of 26% over the last 10 years."'

The DIDS strategy, which is 100% legal, allows Google to avoid US income taxes and European withholding taxes. However, thanks to recent changes in Irish law (which followed pressure from the EU), the favorable treatment is slated to end in 2020.

That doesn't bode well for the company's yoy comps.

https://www.zerohedge.com/news/2019-01-04/google-moved-23-billion-bermuda-tax-haven-2017

  • Upvote 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.


  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.