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Google moved 16bn euros to Bermuda to avoid tax, - Bloomberg

Source : 112 Ukraine

The amount for 2016 was seven percent higher than the year before. Tax shelter saved Google billions of dollars in 2016
08:38, 4 January 2018

Bloomberg

Alphabet Inc.’s Google moved 15.9 billion euros ($19.2 billion) to a Bermuda shell company in 2016, according to the filings in the Netherlands, saving the company billions of tax dollars that year, Bloomberg reported.

According to the outlet, Google uses two structures, known as a “Double Irish” and a “Dutch Sandwich,” to shield the majority of its international profits from taxation. The setup involves shifting revenue from one Irish subsidiary to a Dutch company with no employees and then to a Bermuda mailbox owned by another Ireland-registered company.

It is also said that the amount of money Google moved through this tax structure in 2016 was 7 percent higher than the year before, according to the company's filings with the Dutch Chamber of Commerce dated Dec. 22, which became available online on Tuesday. News about the filings was first reported by the Dutch newspaper Het Financieele Dagblad.

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“We pay taxes and comply with the tax laws in every country we operate in,” a Google spokesman said in a statement. “We remain committed to helping grow the online ecosystem.”

Google is under pressure from regulators and authorities around the world for not paying enough taxes. Last year, the company avoided paying 1.12 billions of euro in French taxes after a court ruled on its Irish subsidiary. It collected revenue for an advertisement sold in France, where the company had no permanent base. The European Union has been exploring ways to make U.S. technology companies, which use similar tax shelters to pay more.

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The Irish government closed the tax loophole that permitted “Double Irish” tax arrangements in 2015. But companies already using the structure are allowed to continue emplying it until the end of 2020.

 

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