Google keeps EU 10 Billion in Bermuda
Google tax strategies and accountancy practices are widely discussed topics not only in media but also on a governmental level. News website shave recently disclosed information that every year, Google sends profits of about EU 10 billion to the Bermuda Island, one of the world’s tax havens offering a 0% corporate tax rate. However, the only sign demonstrating the presence of Google Bermuda Unlimited in the Island is a P.O. box nr. 666 located in the capital Hamilton.
Bermudan government’s official Registrar of Companies indicates that Google Bermuda Unlimited is registered at the address of a law firm, which provides offshore legal and financial services. Google does not have active staff in the Island and does not maintain any property or offices. By legally funnelling its profits to Bermuda, Google legally avoids paying high corporate taxes in the US and other jurisdictions. Tax authorities often investigate Google’s tax optimization practices. For example, the UK tax authorities started auditing Google for tax dodging in Britain with the aim to get back EUR 166 million of unpaid taxes. Peter Barron, Google’s Vice President of communications and public affairs, insists that Google honestly pays its fair share.