Quantcast
Published On: Tue, Dec 11th, 2012

Google shelters profits in tax free Bermuda account, saves $2 billion

 Google has avoided about $2 billion in worldwide income taxes for 2011 by moving $9.8 billion in revenues into a Bermuda company (a shell company) which doesn’t have a corporate income tax.

Legalling funneling profits from overseas into Bermuda cuts its overall tax rate in nearly half.  The amount moved to Bermuda is equivalent to about 80 percent of Google’s total pretax profit in 2011.

Google joined Amazon as another global company who is sheltering revenues by using offshore accounts.

Becoming public in a November 21 filing, outrage is spreading across Europe and the US, decribing the move as “tax dodging.”

The European Union’s executive body, the European Commission, advised member states to create blacklists of tax havens and adopt anti-abuse rules. Last week’s move by the EU were instigated by moves like this, calling corporations “scandalous” and “an attack on the fundamental principle of fairness.” Algirdas Semeta, the EC’s commissioner for taxation, said at a press conference in Brussels.

In a statement from corporate headquarters in Mountain View, Calif., Google said that it complies with all tax rules. The company also said its European investments help those countries’ economies and businesses, and provide thousands of jobs.

Last week, Reuters reported how Amazon has avoided income taxes — $1.5 billion, the IRS claims — by channeling sales through Luxembourg. In the course of accumulating $2 billion to finance expansion, the Seattle-based retailing behemoth has also evaded paying hundreds of millions of dollars to European countries.

On the DISPATCH: Headlines  Local  Opinion

Subscribe to Weekly Newsletter

* indicates required
/ ( mm / dd ) [ALL INFO CONFIDENTIAL]

About the Author

- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

Tags
Displaying 1 Comments
Have Your Say
  1. Review & Outlook: Google’s Bermuda Billions – WSJ.com – Wall Street Journal | USTaxAid Services says:

    […] InsiderGoogle shifts a record $10B to Bermuda shell firm, avoids billions in taxesArs TechnicaThe Global Dispatch -CNETall 154 news […]

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Sign up for our Weekly Newsletter



Recent Posts

When Should You Order Valentine’s Day Flowers?

February 2, 2023, Comments Off on When Should You Order Valentine’s Day Flowers?

Paulette Chaffee Shares Why Private Tutoring is a Powerful Educational Tool

January 31, 2023, Comments Off on Paulette Chaffee Shares Why Private Tutoring is a Powerful Educational Tool

How is a Car Accident Claim Filed? And Other Questions A Lawyer Can Answer

January 27, 2023, Comments Off on How is a Car Accident Claim Filed? And Other Questions A Lawyer Can Answer

The Best Uses for a Home Equity Loan

January 24, 2023, Comments Off on The Best Uses for a Home Equity Loan

Top 8 Reasons to Get an Outdoor Kitchen

January 22, 2023, Comments Off on Top 8 Reasons to Get an Outdoor Kitchen

How is a Christian Wedding Invite Different than a Secular Wedding Invite

January 16, 2023, Comments Off on How is a Christian Wedding Invite Different than a Secular Wedding Invite

Fun and Unusual Ways to Encourage Kids to Stay Healthy

January 12, 2023, Comments Off on Fun and Unusual Ways to Encourage Kids to Stay Healthy

Health Carousel Honors Dr Franklin Shaffer with the DAISY Lifetime Achievement Award

January 12, 2023, Comments Off on Health Carousel Honors Dr Franklin Shaffer with the DAISY Lifetime Achievement Award

Categories

Archives