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

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

Google Transferred EUR 19.9 billion ($22.7 billion) via a Dutch shell Firm to Bermuda in 2017, Within an arrangement Which Allows it to reduce its foreign tax bill, Based on documents filed in the Dutch Chamber of Commerce.

The amount channelled through Google Netherlands Holdings BV was approximately EUR 4 billion more than in 2016, the documents, filed on December 21, revealed.

“We pay all the taxes due and comply with the tax laws in every country we operate in all over the planet,” Google said in a statement.

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

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

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

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

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