Google managed to withdraw from taxation $ 22.7 billion through Ireland and Bermuda
Reuters journalists found that using a tax optimization scheme called “double Irish with a Dutch sandwich” allowed Google in 2017 to get almost $ 23 billion out of taxation.
How it works
To implement the optimization scheme, subsidiaries are used in Ireland, the Netherlands and Bermuda. The money passes from the Irish company through the Dutch (“Dutch sandwich”) to Bermuda, and then the funds are returned to Ireland again to the account of another “daughter” (“double Irish”).
Reuters journalists got access to documents of the Netherlands Chamber of Commerce, according to which, thus, Google managed to withdraw $ 22.7 billion from taxation in the US and Europe.
In a similar way, Google manages to evade paying American corporate income tax - there is none and from European taxes on repatriation of income. Interestingly, in 2017, the Dutch “daughter” of Google paid taxes of € 3.4 million.
According to media reports, in 2016 Google, with the help of a tax scheme, managed to divert about € 16 billion from taxation.
“Like any other multinational company, Google pays the vast majority of its corporate income tax at home, and the global effective tax rate for the last 10 years has been 26%. We pay all taxes and comply with tax laws in each country in which we operate around the world, ”commented on Google using tax optimization schemes.
Despite the effectiveness of the scheme described, its future may be at stake. The EU and US authorities do not like the fact that large companies underpay taxes because of existing loopholes in the legislation. This is why, in 2014, Ireland under pressure from the European Union and the United States decided to stop providing Google with tax advantages starting from 2020.
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