Google uses a complicated legal structure to reduce its overseas tax bill

[forum_admin]

Google uses a complicated structure to send most of its overseas profits to tax havens, keeping its corporate rate at a super-low 2.4 percent

The heart of Google's (Nasdaq: GOOG - News) international operations is a silvery glass office building in central Dublin, a block from the city's Grand Canal. In 2009 the office, which houses roughly 2,000 Google employees, was credited with 88 percent of the search juggernaut's $12.5 billion in sales outside the U.S. Most of the profits, however, went to the tax haven of Bermuda.

To reduce its overseas tax bill, Google uses a complicated legal structure that has saved it $3.1 billion since 2007 and boosted last year's overall earnings by 26 percent. While many multinationals use similar structures, Google has managed to lower its overseas tax rate more than its peers in the technology sector. Its rate since 2007 has been 2.4 percent.

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The Tax Haven That's Saving Google Billions - BusinessWeek

How do they get away with that while everybody else gets taxed to death.

2.4%???

Good for them! **** the police.

[Jack Martin]

The information presented in this post id unique and define research work of author.

[Bryants]

This is just another case in point in how businesses skirt the laws to avoid paying taxes in the country where most of their operations and sales take place. The laws need to be drastically changed.

[jonathan12]

I had read in some post that French government has put an allegation on Google that it is using Ireland as tax haven but Google has dismissed it.Google tax arrangements are facing intense scrutiny now.I thank the author for his detailed research about this tax related issue.

[justin1]

Only Google knows how they achieve such high reduction in the taxes. That's also somehow the reason that they are at the top for so many years now.

[Hanson Duby]

To reduce its overseas tax bill, Google uses a complicated legal structure that has saved it $3.1 billion since 2007 and boosted last year's overall earnings by 26 percent.