Google accounts show 11 billion euros moved via low tax 'Dutch sandwich' in 2014

[Eugene]

Source: Reuters

Technology | Fri Feb 19, 2016 8:20am EST

Google accounts show 11 billion euros moved via low tax 'Dutch sandwich' in 2014

AMSTERDAM/LONDON | BY TOBY STERLING AND TOM BERGIN

Google moved 10.7 billion euros ($12 billion) through the Netherlands to Bermuda in 2014, as part of a structure which allows it to earn most of its foreign income tax free.

Accounts for Google Netherlands Holdings BV published on Thursday show the unit transferred almost all its revenue, mainly royalties from an Irish affiliate through which most non-U.S. revenue is channeled, to a Bermuda-based, Irish-registered affiliate called Google Ireland Holdings.

The tax strategy is known to accountants as the "double Irish, Dutch Sandwich'. It allows Google, now part of holding company Alphabet Inc, to avoid triggering U.S. income taxes or European withholding taxes on the funds, which represent the bulk of the group's overseas profits.

A Google spokesman said the company follows the tax rules in all the countries where it operates.

The decade-old arrangement allowed Alphabet to enjoy an effective tax rate of just 6 percent on its non-U.S. profits last year, around a quarter the average tax rate in its overseas markets.

[font size=1]-snip-[/font]

Read more: http://www.reuters.com/article/us-google-tax-idUSKCN0VS1GP

[napi21]

1. THIS is BEGGING for TAX REFORM! There are THOUSANDS of loopholes like

sprinkled throughout our tax code. MANY specifically designed to benefit a single business or industry. This is exactly what Bernie is referring to when he says the money to fund his plans will come from closing tax loopholes.

[cantbeserious]

2. Agreed Completely

eom