Google Used 'Double-Irish' To Shift $75.4 Billion in Profits Out of Ireland
Monday April 19, 2021. 06:02 PM , from Slashdot
Google shifted more than $75.4 billion in profits out of the Republic using the controversial 'double-Irish' tax arrangement in 2019, the last year in which it used the loophole. From a report: The technology giant availed of the tax arrangement to move the money out of Google Ireland Holdings Unlimited Company via interim dividends and other payments. This company was incorporated in Ireland but tax domiciled in Bermuda at the time of the transfer.
The move allowed Google Ireland Holdings to escape corporation tax both in the Republic and in the United States where its ultimate parent, Alphabet, is headquartered. The holding company reported a $13 billion pretax profit for 2019, which was effectively tax-free, the accounts show. A year earlier, Google Ireland Holdings paid out dividends of 23 billion euros, having recorded turnover of $25.7 billion. Google has used the double Irish loophole to funnel billions in global profits through Ireland and on to Bermuda, effectively putting them beyond the reach of US tax authorities. Companies exploiting the double Irish put their intellectual property into an Irish-registered company that is controlled from a tax haven such as Bermuda.
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