In 2015, Google saved $ 3.6 billion in taxes in Europe by moving profits to Bermuda through the Netherlands. Compared with the previous similar case, the amount increased by 40%. It is reported by Bloomberg with reference to the Dutch regulators.
According to the company’s financial statements, Google saved tax payments of $ 3.6 billion using the Double Irish and a Dutch sandwich scheme.
The company accumulated most of its profits in the Irish accounts of Google Ireland Limited, after which it transferred to the Dutch Google Netherlands Holdings BV, which does not officially list employees. And then in Google Ireland Unlimited, which is registered in Ireland, but located in Bermuda, and therefore may not pay income tax.
Moving most of its international profit under this scheme, the company reduced the tax rate to 6.4% in 2015. Compared to 2014, the amount of unpaid taxes increased by 40%, the publication notes.
In 2015, the Irish government closed a hole in the law, which made it possible to carry out such operations. But companies that already worked under this scheme were allowed to continue operations until 2020.
Google is under pressure from tax regulators around the world. On December 20, Indonesia demanded that the company respond to regulatory requirements by the end of the year, including a possible fine of $ 223 million. Google’s French and Spanish offices were also subject to tax investigations in 2016.
At the end of November, US President-elect Donald Trump discussed the possibility of returning international profits of American companies to their homeland. He proposed to establish a one-time tax of 10% for foreign activities. Currently, many American companies keep their profits abroad. Apple currently stores $ 181 billion outside the US, and Microsoft $ 94 billion, according to the publication.