Categories: Business

Bloomberg: Google’s Dublin offices saving Google billions in US and Irish tax

Bloomberg has published a damning article accusing Google of using “a complicated structure” of overseas accounts, including its Dublin offices, to avoid paying US tax.

The article accuses Google of using a number of non-US locations to manage and filter profits to avoid paying tax and charges in The States. This system has apparently saved the company $3.1 billion since 2007. According to the article Google Ireland manages revenue through a subsidiary company held in Bermuda, which has no corporate tax, to lower its tax liability. Bloomberg also suggest that Google avoids paying the Irish tax rate of 12.5% through this system.

The article says, “In Bermuda there’s no corporate income tax at all. Google’s profits travel to the island’s white sands via a convoluted route known to tax lawyers as the “Double Irish” and the “Dutch Sandwich.” In Google’s case, it generally works like this: When a company in Europe, the Middle East, or Africa purchases a search ad through Google, it sends the money to Google Ireland. The Irish government taxes corporate profits at 12.5 percent, but Google mostly escapes that tax because its earnings don’t stay in the Dublin office, which reported a pretax profit of less than 1 percent of revenues in 2008.”

While the article point out that Google actions are legal it reports that these methods, controversial as they are, are commonly used by multinational companies despite the fact that they raise “ethical questions.”

You can read the full Bloomberg article here. Let us know what you think here.

Ajit Jain

Ajit Jain is marketing and sales head at Octal Info Solution, a leading iPhone app development company and offering platform to hire Android app developers for your own app development project. He is available to connect on Google Plus, Twitter, Facebook, and LinkedIn.

View Comments

Recent Posts

Balancing innovation and ethics: Chile faces national debate as proposed bill to regulate AI use advances

“It’s not that a country like Chile aspires to have a seat at the table…

18 hours ago

WEF co-chair Hoffmann slated to make 1st appearance with new title at Sustainable Development Impact Meetings

The World Economic Forum (WEF) announces its first batch of speakers and sessions for the…

1 day ago

Planno: AI-powered prospecting platform helping solar enterprises identify opportunities faster and at scale

In today's market, massive solar enterprises are helping to accelerate the transition to renewable energy.…

2 days ago

Beyond Paperwork: How empathy is starting to matter in the financial industry

The so-called Great Wealth Transfer is no longer a distant prediction. It is estimated that…

4 days ago

WEF publishes blueprint to monetize everything in nature

The WEF claims that Larry Fink & Andre Hoffmann's work on the board 'do not…

5 days ago

Fabian Society outlines how govt can ‘upscale circular economy’

How long until the wolf sheds its sheepskin? Fabians are sleepwalking society towards the 'own…

1 week ago