according to bloomberg(beijing time) on january 3, the netherlands, regulatory documents show google company in 2016 to a shell company in bermuda, 15.9 billion euros($19.2 billion) fund, in this year to save billions of dollars in taxes.
google uses two kinds of structure to avoid most of the international tax profit is:one is"double"ireland(double irish), the other is a"sandwich"in the netherlands(dutch sandwich).this arrangement needs the revenue from an irish subsidiaries transferred to a dutch company no employees, and then transferred to another irish company owns a bermuda mailbox.
according to google to the dutch chamber of commerce to submit a document date will be on the 22nd of december, google in 2016 with the tax structure transfer funds rose 7%.
"we should pay all the payment of all taxes, global each country we operate in comply with the local tax law,"google spokesman said in a statement,"we are committed to help expand the online ecosystem."
the financial documents, according to google in 2016 global effective tax rate of 19.3%, in part because most international profits to google moved to bermuda entities.according to the tax rate calculation, google through the transfer of profits tax of$3.7 billion in 2016.
google is now facing the global regulators and pressure of the government, the latter believe that google did not pay enough taxes.last year, google to avoid french tax bill of 1.12 billion euros, the reason is that a court ruled that google is responsible for the charge in france the irish subsidiary of advertising is not a permanent office in france.the eu is trying to get us technology companies to pay more taxes.many american technology companies use tax structure similar to that of the google.
tax expert robert willens(robert willens), said google amount of calculation is better way for google to bermuda ireland's 12.5% rate of using the capital, because tax revenues have been here.according to the tax rate calculation, google tax amount is about$2.4 billion.
google with the securities and exchange commission(sec), according to documents submitted by the end of 2016, google has yet to pay the income tax or withholding income tax"foreign"overseas income of$60.7 billion.
last month, america's congress has just passed the new tax law, allowing companies to select one of the two kinds of taxes on foreign income tax:one is for income held in cash or cash equivalents impose a 15.5% tax rate, another kind is a 8% tax on illiquid assets.