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

The sum through Google Netherlands Holdings BV was approximately EUR 4 billion over in 2016, the files, registered on December 21, revealed.

“We cover all the taxes due and obey the tax legislation in each country we operate in all over the planet,” Google stated in an announcement.

“Google, as with other multinational firms, pays the great majority of its own corporate income taxation in its home nation, and we’ve paid a worldwide effective tax rate of 26% during the previous ten decades.”

For at least a decade that the agreement has enabled Google proprietor Alphabet to relish an effective tax rate in the single digits on its own non-US profits, approximately a quarter that the normal taxation rate at its overseas markets.

The subsidiary in the Netherlands is employed to change revenue from royalties made outside the United States into Google Ireland Holdings, an affiliate established in Bermuda, in which firms pay no income tax.

The taxation plan, called the”Double Irish, Dutch Sandwich”, is lawful and enables Google to prevent triggering U.S. income taxation or European withholding taxes to the capital, which represent the majority of its overseas gains.

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

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