When it comes to business, many big companies try to find some ways through which they can save their money from getting taxed, and it seems like Google has found its way. According to the Dutch chamber of commerce, Google shifted more than 19.7 billion euros through a Dutch shell company to Bermuda in order to save the foreign taxes. The report further says that Google has been using this tactic to transfer its fund to tax havens like Bermuda from last few years. In 2016 it moved more than 4 billion dollars through the same dutch shell company to Bermuda. There are many tax havens like Bermuda where the big tech companies don’t need to worry about the taxes at all, and that’s why such company transfer their funds at those places.
However, Google has officially said that they have not done such kind of practices and the company has paid regular taxes without any default. The official authority of the company announced that Google had paid most of its tax to the home country at a higher rate of 26 percent regularly. However, many reports claim that Google has been transferring its revenues from one place to another to save the taxes since there are some places like Ireland, Bermuda where they don’t need to pay a single amount of duty. This tax strategy is legal, and it’s called “Double Irish, Dutch Sandwich” which protects a company’s overseas funds from getting taxed in The USA.
However, under the European countries and US pressure Ireland is also started to charge taxes on Google’s funds which is creating some problems for the company. However, it will be interesting to see now what move Google will take to save its overseas revenues from getting taxed.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.