Google has a impressively, perhaps outrageously, complicated tax-avoidance system. Try to understand it from this Financial Times article:
‘Dutch sandwich’ grows as Google shifts €8.8bn to Bermuda
By Vanessa Houlder
Google funnelled €8.8bn of royalty payments to Bermuda last year, a quarter more than in 2011, underlining the rapid expansion of a strategy that has saved the US internet group billions of dollars in tax.
By routing royalty payments to Bermuda, Google reduces its overseas tax rate to about 5 per cent, less than half the rate in already low-tax Ireland, where it books most of its international sales…
Keep reading: ‘Dutch sandwich’ grows as Google shifts €8.8bn to Bermuda – FT.com.
