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Google moves $12 bn via low-tax 'Dutch sandwich'

The decade-old arrangement allowed Alphabet to enjoy an effective tax rate of just 6 per cent on its non-US profits last year

Reuters  |  Amsterdam/London 

Google moved euro 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 published on Thursday show the unit transferred almost all its revenue, mainly royalties from an Irish affiliate through which most non-US revenue is channelled, 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 ...

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First Published: Fri, February 19 2016. 23:36 IST
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