Recently released regulatory findings indicates that E commerce giant Google saved around $2.4 billion by moving the majority of its overseas profits to Bermuda-based Dutch subsidiary of the organisation. Google moved its profits to Bermuda which is a tax haven for corporations through through its Dutch subsidiary, Google Netherlands Holdings . In this manner the company protected its money from the prying eyes of tax agencies worldwide, Dutch magazine Quote reports.
The magazine calls this tax avoidance scheme as ‘Double Irish’ and a ‘Dutch Sandwich’. The government in Bermuda charges no income tax to companies. Google is not the only global company that uses this Dutch Sandwich method to save money. Many Multinational billion dollar companies are facing criticism of avoiding tax obligations in places they operate. “Google complies with the tax laws in every country where we operate,” said Google in an email statement as quoted by Bloomberg news.
Alphabet, the parent company of Google bears a minimal 6 percent tax on no-US profits, following the ten year tax scheme of Google. During the last week Google was criticised in the British parliament for its back tax bill. The search engine giant even with a revenue of 24 billion pounds in UK, has a 130 million pounds back tax bill, a huge gap in between income and taxes.
“As the public have got to understand better what corporate tax avoidance is, there is a clear sense of outrage that is going well beyond a small group of protesters – it’s something that the public feels is really not right with the current system,” said War on Want’s tax justice campaigner Murray Worthy as mentioned in a report by the BBC.