Published on : Jan 03, 2018
According to regulatory filings in the Netherland, Alphabet’s Google moved US$19.2 bn to a Bermuda shell firm, which saved it around US$3.7 bn in taxes in 2016. To shield a large portion of its international business profits from taxation, Google utilizes two structure, Dutch Sandwich and Double Irish, and the setup includes moving the revenue from one of its Irish subsidiary to a Dutch firm with zero staff, and then to a Bermuda mailbox, which is owned by another company register in Ireland. In 2016, the amount of the money that the Internet giant shifted through this tax structure was 7% greater than what it was in 2015, as per the filings of the company with the Dutch Chamber of Commerce filed on December 22, 2017. These records were made available online on January 02, 2017. The news regarding the filings was first published in Het Financieele Dagblad, a Netherland-based newspaper.
The Internet giant is under pressure from policy watchdogs all around the world for paying lesser tax than actual. In the previous year, the company escaped a huge tax bill of 1.12 billion in France after its Irish subsidiary, which originally collects revenues for the advertisements the firm sells in France without a permanent base in the nation, was ruled by a court. The European Union (EU) has been exploring means to make many of the U.S.-based technology firms, which are utilizing similar tax shelters, pay adequate tax.