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Monday, 17 Dec 2018

Technique of Google to saved USD 3.7 billion to pay its taxes in 2016

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Technique of Google to saved USD 3.7 billion to pay its taxes in 2016Technique of Google to saved USD 3.7 billion to pay its taxes in 2016

News24xx.com -  Google can saved at least USD 3.7 billion or around IDR 49.7 trillion to pay its taxes in 2016.

It's because Google moved its revenue of 16 billion euros to Ireland, the Netherlands and Bermuda.

This technique is commonly referred to as Double Irish and Dutch Sandwich, which takes advantage of loopholes in foreign tax regulations. In 2016, Google even save 7% more than 2015, with a tax rate of 19.3%.


"We have paid all taxes to follow the tax rules in every country where we operate in worldwide. And we are committed to helping the growth of the online ecosystem," Google said in a statement.


The technique that used by Google is to receive all revenue from its ads around the world to saved to a shell company in Ireland, which then the income is saved in his company in the Netherlands, as quoted from The Verge on Thursday, January 4 2018.


Then the funds are transferred to another shell company in Ireland, which is physically located in Bermuda. At this latter company Google reports these funds as revenue, which impose a corporate income tax rate of 0%.

 

 

 

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