05-28-2016, 09:45 AM
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It's 42
Industry Role:
Join Date: Jun 2010
Location: Global
Posts: 18,083
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Forbes google-moved-billions-of-dollars-to-bermuda-to-avoid-taxes-again
Quote:
On Friday, Reuters reported that in 2014 the tech giant—which now falls under parent company Alphabet—transferred 11.7 billion Euros (approximately $13 billion) to Bermuda in an effort to minimize the taxes it had to pay on its income through a little tax maneuver that has been dubbed a “Double Irish with a Dutch Sandwich.”
In the simplest of terms, Google , like many multinational corporations, used differences in the Irish and American tax codes to its advantage. A portion of Google’s profits are paid to an Irish affiliate as royalties on its patents (which are taxed at a lower rate). To further avoid taxes, this money is then routed to the company’s Dutch subsidiary, Google Netherlands Holdings BV. From there, the company tranfers its revenue to another affiliate, Google Ireland Holdings, which is based in the notorious tax haven of Bermuda—but registered in Ireland, Reuters reports. So there you have it—double Irish with a Dutch sandwich.
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