Observed Signal · Jan 4, 2019 · Policy Update · Source: OnlineMarketing.de · Impact: 4/5 · Sentiment: Negative
Tax avoidance: Google moves billions to Bermuda
Google is reported to have exploited Bermuda's tax regime to reduce its tax burden by moving billions through a Dutch holding structure. In 2017, approximately €20 billion was transferred to Bermuda via Google Netherlands Holdings BV, with around €16 billion moved in 2016. Bermuda imposes no income tax, and the transfers are linked to Alphabet's Irish arrangements. While Google states it pays all taxes due and complies with laws worldwide, the EU and US have pressured against such tax strategies, arguing they erode tax bases. The article notes that from 2020, the preferential tax treatment granted to Google's European subsidiary in Ireland is slated to end. No individuals are named in connection with the report.
Policy Update from Major Platform (Google) on tax arrangements.
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Key Takeaways & Evidence Grounding
- In 2017, Google transferred about €20 billion to Bermuda via Google Netherlands Holdings BV.
- In 2016, transfers of about €16 billion occurred.
- Bermuda has no income tax.
- Transfers originate from Alphabet's Irish arrangements.
- From 2020, the existing tax advantages for Google's European unit in Ireland are set to end.
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