Google Shifted $23 Billion to Tax Haven Bermuda in 2017, Filing Shows

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Google Shifted $23 Billion to Tax Haven Bermuda in 2017, Filing Shows

The amount through Google Netherlands Holdings BV was approximately EUR 4 billion over in 2016, the documents, registered on December 21, showed.

“We cover all the taxes due and obey the tax legislation in every country we operate in all over the world,” Google said in an announcement.

“Google, like other multinational companies, pays the vast majority of its corporate income tax in its home country, and we’ve paid a worldwide effective tax rate of 26 percent during the last ten decades.”

For more than a decade the arrangement has enabled Google proprietor Alphabet to relish an effective tax rate in the single digits on its non-US profits, around a quarter that the average tax rate in its overseas markets.

The subsidiary in the Netherlands is used to shift revenue from royalties earned outside the United States to Google Ireland Holdings, an affiliate based in Bermuda, where companies pay no income tax.

The tax plan, known as the”Double Irish, Dutch Sandwich”, is lawful and enables Google to avoid triggering U.S. income taxes or European withholding taxes to the funds, which represent the bulk of its overseas profits.

But under pressure from the European Union and the United States, Ireland at 2014 decided to phase out the agreement, finishing Google’s tax benefits in 2020.

Google Netherlands Holdings BV paid EUR 3.4 million in taxes in the Netherlands in 2017, the documents showed, on a gross profit of EUR 13.6 million.

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