Google shifted $22.7 billion to tax haven Bermuda in 2017
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https://www.reuters.com/article/us-google-taxes-netherlands-idUSKCN1OX1G9?utm_campaign=trueAnthem:+Trending+Content&utm_content=5c2e84bd04d30136f111f644&utm_medium=trueAnthem&utm_source=twitter&utm_source=reddit.com
AMSTERDAM (Reuters) - Google moved 19.9 billion euros ($22.7 billion) through a Dutch shell company to Bermuda in 2017, as part of an arrangement that allows it to reduce its
foreign tax bill, according to documents filed at the Dutch Chamber of Commerce.
The amount channeled through Google Netherlands Holdings BV was around 4 billion euros more than in 2016, the documents, filed on Dec. 21, showed. For more than a decade the
arrangement has allowed Google owner Alphabet (GOOGL.O) to enjoy an effective tax rate in the single digits on its non-U.S. profits, around a quarter the average tax rate in its
overseas markets.
The subsidiary in the Netherlands is used to shift revenue from royalties earned outside the United States to Google Ireland Holdings, an affiliate based in Bermuda, where companies
pay no income tax. The tax strategy, known as the “Double Irish, Dutch Sandwich”, is legal and allows Google to avoid triggering U.S. income taxes or European withholding taxes on
the funds, which represent the bulk of its overseas profits.
However, under pressure from the European Union and the United States, Ireland in 2014 decided to phase out the arrangement, ending Google’s tax advantages in 2020.
Google Netherlands Holdings BV paid 3.4 million euros in taxes in the Netherlands in 2017, the documents showed, on a gross profit of 13.6 million euros.
Weren't the open ended tax reforms supposed to encourage big american corporations to return that money back into the american finacial market?
This shit shouldn't be allowed, but if I owned a multi-billion company I would do the same for as long as it stays legal.
If one company doesn't do evil the others that will will beat them. Capitalism ensures a race to the bottom.
Unregulated capitalism does. And our country's corporate regulation is at a record low. We need progressive-era levels of regulation back as soon as possible, otherwise nothing will change.
You basically have to do this to remain competitive because all your competitors will be doing it.
These tax codes exist because of Cronyism, not "Unregualted capitalism". Actual capitalism doesn't pick winners with Byzantine legislation and tax codes.
I can't blame Google for doing it. It is in their best interests to make every penny they can. Until lawmakers grow a spine and start properly regulating these kinds of things, we aren't going to be seeing any changes. People rarely do good things just because it's morally right, corporations (while still legally people, wtf) definitely don't.
I would love to see some kind of CBO estimate for how much the US loses in tax income from these kinds of things.
huh, weird we stopped even taxing foreign earnings so why are they bothering.
could it be the TAX CUTS AND JOBS Act did not actually address the main reason they offshore jobs and horde cash?
Even if it were illegal, if the fines x chance of being caught works out to cost less than what you stand to gain then you're basically obliged to do it.
The loophole they use closes in 2020, but I'm sure they'll find another one.
The problem is Europe's. The money was made in Europe, and then moved through a European shell company to Bermuda.
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