How Google Avoided USD 2 Billion in Taxes

[American Pakistani]

This is How Google Avoided USD 2 Billion in Taxes

By KayCee · Tuesday, Dec 11, 2012

In light of FBR’s recent wish of taxing Google for the revenues it generates from Pakistan, an interesting finding has been unveiled by Bloomberg according to which Google dodged tax authorities in Europe and US to save a whopping USD 2 billion dollars in taxes in 2011.

To understand the whole thing, Google used a simple idea of putting the expenses in a company registered in a high-taxed country, while majority of the revenues were transferred to a subsidiary registered in Bermuda – a place where corporations aren’t taxed.

According to Bloomberg, Google shifted almost USD 10 Billion into a subsidiary registered in Bermuda, for all the revenues it generated through overseas subsidiaries (including those registered in UK, France and elsewhere).

Bloomberg says that this shift of money is actually the royalty fee paid by one Google subsidiary (Registered in Ireland) to another subsidiary of Google that is registered in Bermuda.

Hence, the royalty fee becomes as an expense in Ireland, while the profit of subsidiary company that received the royalty remains tax-free in Bermuda.

Google said it complies with all tax rules, without explaining that why it shifted USD 10 billion to a company that is registered in Bermuda and which has not a single employee.

This is How Google Avoided USD 2 Billion in Taxes

 

[JayAtl]

This is a fundamental flaw in our system. other countries levy taxes on companies even if profits were earned elsewhere. The counter argument, which you can see is a failed one, is - 'but we will get double taxed' i.e in the country we make profits and back in the US. That's why when I hear republicans ask for deduction in corporate taxes I don't buy into it.

 

[Audio]

The Commission said EU members lose 1tn euros a year through tax evasion and avoidance

BBC News - Tax avoidance targeted by European Union

fucking 1 trillion.....1/17th of the whole gdp......corporate bijatches will pay

 

[terranMarine]

BBC News - Tax avoidance targeted by European Union

fucking 1 trillion.....1/17th of the whole gdp......corporate bijatches will pay

Or else what? You gonna make them pay with that gun of yours?

 

[Audio]

Or else what? You gonna make them pay with that gun of yours?

more one liners? That all you got chi-bot?
Then again, why am i surprised? We already established that nuggets of Chinese wisdom is too much for you to wrap your head around and that you basically just waste bandwidth and my time.

now shoo if you dont have anything meaningful to add to the discussion.

 

[scholseys]

Smart business by google. Screw the tax man!

 

[idune]

Under the veil there is low key economic warfare already underway. For those of whom notices, US is milking UK and EU companies and banks for violating rules. StandardCharterd and HSBC already fined about $3.00 billion. BP had to pay hefty fine. On other side UK already forced Starbucks to pay more and EU targeting Google, Amazon etc.

These are all small amounts compare to what US, UK and EU need to save their economy. So at the end more war is expected to steal money in the name of regime change, WOT, Pivot and newly added Silk road projects in multiple regions of the world.

 

[kawaraj]

these idiot nations only use foreign company as the scapegoats when they are helpless in domestic economic stimuli.

well Google is a crook as well I hate this jewish firm, they basically anti-muslim, anti-east, anti-China, and anti-human value for general.

 

[rafaleski]

basically scroogle is trying 2 play smartas*

 

[Wright]

Smart move.

 

[CZAR]

These low tax jurisdictions are a nuisance. These jurisdictions promote the stocking up of black money and exploiting of legal frameworks for undue tax benefits. India is facing a similar problem with Vodafone. The bastards bought a company operating in India for USD 11.2 billion and refused to pay the capital gains tax - simply because the company's shares were bought in Netherlands.

And govt's attempts to make Vodafone pay it's legitimate share of taxes is being termed as "hurting investor climate".

These jurisdictions are good for nothing and help in round tripping of black money. India needs to scrap its DTAAs with low tax jurisdictions like Mauritius.