Google moved $23 billion to Bermuda in 2017 to avoid taxes

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AMSTERDAM — Google moved 19.9 billion euros ($22.7 billion) by way of a Dutch shell firm to Bermuda in 2017, as a part of an association that permits it to cut back its international tax invoice, in keeping with paperwork filed on the Dutch Chamber of Commerce.

The quantity channeled by way of Google Netherlands Holdings BV was round four billion euros greater than in 2016, the paperwork, filed on Dec. 21, confirmed.

“We pay the entire taxes due and adjust to the tax legal guidelines in each nation we function in world wide,” Google stated in a press release.

“Google, like different multinational corporations, pays the overwhelming majority of its company revenue tax in its house nation, and we have now paid a world efficient tax fee of 26 p.c over the past ten years.”

For greater than a decade the association has allowed Google proprietor Alphabet to get pleasure from an efficient tax fee within the single digits on its non-US earnings, round 1 / 4 the typical tax fee in its abroad markets.

The subsidiary within the Netherlands is used to shift income from royalties earned outdoors the US to Google Eire Holdings, an affiliate based mostly in Bermuda, the place corporations pay no revenue tax.

The tax technique, often called the “Double Irish, Dutch Sandwich,” is authorized and permits Google to keep away from triggering US revenue taxes or European withholding taxes on the funds, which signify the majority of its abroad earnings.

Nevertheless, beneath stress from the European Union and the US, Eire in 2014 determined to part out the association, ending Google’s tax benefits in 2020.

Google Netherlands Holdings BV paid three.four million euros in taxes within the Netherlands in 2017, the paperwork confirmed, on a gross revenue of 13.6 million euros.

https://nypost.com/2019/01/04/google-moved-23-billion-to-bermuda-in-2017-to-avoid-taxes/

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