The Google parent company, Alphabet discharged more many billions of euros to the authorities in foreign tax havens – quite legally. The starting point is the Netherlands.
Almost 20 billion euros have been funneled this way out of Europe, it is clear from documents of the Dutch chamber of Commerce. In Bermuda there is no income for corporate tax. In 2016, Google had transferred about 16 billion euros there. In the years prior to that, the European States have gone on this way, many billions of euros in tax revenue lost.
As in previous years, said Google, also this time, the company believe in all of the countries in which it operates of the tax laws. The money transfer is legal. It is a structure that is by experts as “Double Irish, Dutch Sandwich”.
Low tax rates
A Dutch Google subsidiary transferred almost all of their revenue to Google Ireland Holding, which has a Bermuda resident, however, as a company in Ireland, is registered. The revenue comes primarily from license fees of an Irish offshoot, the majority of sales outside of the US business runs.
Further course information, to Alphabet A
thanks to this for a decade, the existing structure of the Google native Alphabet paid last only an effective tax rate of six percent on their profits outside of the United States. This is about a quarter less than the average tax rate in foreign markets.
next year, the conclusion should be
However, the existing loopholes are to be closed in the near future. Under pressure from the European Union and the United States, Ireland has decided that this agreement is terminated and the tax benefits for the group in 2020.
Also other international corporations like Apple or Facebook are due to such tax tricks in the criticism. The EU alone is estimated to annually loses 50 to 70 billion euros due to “aggressive tax avoidance“.
losers
havens, According to a study by researchers from the University of Copenhagen and the University of California, Berkeley multi-national company Parking currently, gains in the volume of around 600 billion dollars in tax. The USA, the UK and Germany are the biggest losers. Alone from Germany in 2015, the year of the study, around 55 billion dollars flown down. The main winners are Ireland, Luxembourg and Singapore, but also in the Caribbean States, Hong Kong, the Netherlands and Switzerland.
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