Google stole from taxation of about €11 billion by using the “sandwich”


For one 2014 Google has withdrawn from taxation under €10.7 billion, using as the interlayer Dutch and Irish companies, reports Reuters with reference to the statements of Google Netherlands Holdings BV.

From documents follows, that the revenues Google Netherlands in 2014 generated mainly through license fees from the Irish unit of Google, where is accumulated most of the revenue received by Google from work outside the United States, was almost completely redirected registered in Ireland, but Bermuda-based Google Ireland Holdings.

As a result, Google managed to avoid paying American tax on profits (in Bermuda) and the European taxes on repatriation of profits. And Google Netherlands, which there is not a single employee, paid into the Treasury of the Netherlands only €2.8 million

Through the use of tax schemes, Google’s revenue from work outside the United States are taxed at an effective rate of 6%, which is approximately four times below the average level.

A spokesman for Google told Reuters that the company operates in full compliance with the tax legislation of the countries in which it operates.

Earlier, the authorities of several European countries showed Google’s claims, demanding to share with the Treasury the part of income received. In particular, the UK tax authorities in January 2016 managed to get from Google agree to pay as compensation for the “aggressive” tax avoidance over the last ten years £130 million For comparison, in 2013 Google has received in the UK sales revenue of over $5.6 billion but paid out in taxes, only £20.5 million

Later it became known that the Italian authorities tried to get the Google to pay compensation to €150-200 million, but agreement could not be reached.

At the beginning of February 2016, the company Alphabet (owned by Google) announced that its net profit in the fourth quarter of 2015 grew to $4.9 billion After the publication reporting the price of the Corporation’s shares soared by 9%, and Alphabet capitalization reached $568 billion, making it the most valuable company in the world.