Tax optimization: Google has sheltered 16 billion euros in tax havens in 2016

In 2016, Google placed 16 billion euros in a structure in Bermuda, avoiding it to pay several billion euros in taxes.

 The tax optimization technique known as the "Irish sandwich" is working at full capacity at the multinationals and allows them to avoid paying taxes in the markets where they are present.

According to documents from the Dutch authorities, Google giant would have moved nearly 16 billion euros in profits in Bermuda in 2016, significantly reducing the amount of his tax.

Related: Google News zaps sites that hide their home country 
 Even if Google paid a little more taxes on its profits in 2016 compared to the previous year, the US group would have saved several billion euros of additional taxes by this method, which remains legal (more for a long time) but is very criticized.

Google defends itself logically by claiming to remain in the legality vis-à-vis the regulations of the different countries but has been the subject of several procedures by the national tax authorities.

Source : FFT

 In France, the tax authorities claimed more than 1 billion euros in arrears but the company has managed to dodge this penalty by playing on the fact that the French subsidiary is more of an empty shell than a real company.

With a US tax rate of 19.3% in 2016, Google was able to save $ 3.7 billion by moving profits generated by international markets to its Bermuda subsidiary.

Even taking into account Ireland's 12.5% tax rate, this represents $ 2.4 billion in unpaid taxes. Google will still have to comply with new US legislation that now imposes rates of 8 or 15.5% (depending on the type of resource) on the profits accumulated by US companies in tax havens.

Source : Bloomberg


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suivre Dhaouadi Aymensur