About legal tax loopholes has passed Google in 2017, almost 20 billion Euro from Europe. The parent company, Alphabet transferred this sum via the Netherlands to Bermuda. The documents, which were submitted to the Dutch chamber of Commerce.

In Bermuda there is no income for corporate tax. Google will use this tax trick since more than ten years, in 2016, the group transferred approximately EUR 16 billion there. Google announced that the company had in all of the countries in which it operates of the tax laws.

The money transfer is legal. It is a structure that is by experts as “Double Irish, Dutch Sandwich”. A Dutch Google subsidiary transferred almost all of their revenue to Google Ireland Holding, which has a Bermuda resident, however, as a company in Ireland, is registered.

dispute over digital tax

The revenue comes mainly from royalties of an Irish offshoot, the majority of sales outside of the US business runs. Under pressure from the European Union and the United States, Ireland has decided, in 2014, that this agreement is terminated and the tax benefits for the group in 2020.

digital companies like Google and Facebook pay in Europe, the EU Commission shows that only half as much taxes as classic companies. The reason is that they are often located in places that do not collect taxes or their businesses in countries with favorable conditions, bundle. The EU Commission and the Parliament want to tax the large digital corporations, therefore, more best.

there were, However, least of all in the EU member States, must unanimously decide on tax issues, no consensus on a rapid introduction. Concerns came mainly from Ireland and some Scandinavian countries. A compromise proposal from Germany and France. This in diplomatic circles, that a tax of three percent was on online advertising revenues will be until March 2019 adopted, and from January 2021 to apply.

brt/Reuters/dpa

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