Google has transferred $ 23 billion into the Bermuda tax haven on 2017, recording demonstrations

Google handled $ 22,7 billion through a Dutch company for Bermuda on 2017 as part of an agreement to reduce its foreign tax bill, according to documents filed with the Dutch chamber of commerce.

The amount channeled through Google Netherlands Holdings BV was about 4 billion more than in 2016, documents showed, presented at 21 in December.

"We pay all taxes due and we comply with tax laws in all countries where we operate around the world," Google said in a statement.

"Google, like other multinational companies, pays the vast majority of corporate income tax in their home country and we paid a global effective tax rate of 26% over the past 10 years."

Google's owner, Alphabet, has recorded a one-digit effective tax rate on profits outside the US for more than a decade. Photo: Jeenah Moon / Reuters

For more than a decade, the agreement allowed Google's owner, Alphabet, to enjoy a one-digit effective tax rate on its profits outside the United States, about a quarter of the average tax rate in its international markets.

The Dutch subsidiary is used to transfer revenue from royalties earned outside the US to Google Ireland Holdings, a Bermuda-based affiliate, where companies do not pay income tax.

The tax strategy, known as the "double Dutch, Irish sandwich," is legal and allows Google to avoid raising US income taxes or withholding taxes on funds, which account for the bulk of its profits overseas.

Source: The Guardian

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