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Google shifted $23 bn via a Dutch shell firm to Bermuda in 2017: Report

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

Reuters 

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moved 19.9 billion euros ($22.7 billion) through a Dutch shell company to in 2017, as part of an arrangement that allows it to reduce its foreign tax bill, according to documents filed at the

The amount channelled through Holdings BV was around 4 billion euros more than in 2016, the documents, filed on Dec. 21, showed.

"We pay all of the taxes due and comply with the tax laws in every country we operate in around the world," said in a statement.

"Google, like other multinational companies, pays the vast majority of its corporate income tax in its home country, and we have paid a global effective tax rate of 26 percent over the last ten years."

The subsidiary in the is used to shift revenue from royalties earned outside the to Google Holdings, an affiliate based in Bermuda, where pay no income tax.

The tax strategy, known as the "Double Irish, Dutch Sandwich", is legal and allows Alphabet-owned Google to avoid triggering US income taxes or European withholding taxes on the funds, which represent the bulk of its overseas profits.

However, under pressure from the and the United States, in 2014 decided to phase out the arrangement, ending Google's tax advantages in 2020.

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.

First Published: Thu, January 03 2019. 22:53 IST
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