Google Uses Loopholes to Avoid $3.6B in Tax in 2015

Google avoided paying out $ 3.6 billion in taxes last year thanks to well-known loopholes known as the ‘Double Irish’ and ‘Dutch Sandwich.’

A report from Bloomberg has revealed Google’s international tax revenues are being funnelled through a subsidiary in Ireland, which is known for its favorable tax code. From there, the holding, known as Google Ireland Limited, sends the funds to a subsidiary in the Netherlands, which also has low tax rates. From there, Bloomberg reports, Google sends the money to a company in Bermuda that has no employees. Dubbed Google Ireland Holdings Unlimited, it can legally license Google intellectual property and, therefore, take ownership of the profits.

Google, in a filing to the Dutch Chamber of Commerce, revealed it, in 2015, moved 40 percent more of its profits using that system than it did in 2014. That means, according to Bloomberg, Google has sheltered roughly $ 58.3 billion from Uncle Sam.

While Ireland has since done away  with the Double Irish loophole, tech companies like Google have until 2020 to stop using the country as a tax shelter.

Google had little to say on the matter, but told Bloomberg that it “complies with the tax laws in every country” in which it operates.


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