Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Google Used 'Double Irish' Loophole to Dodge Billions in 2019 Taxes

Google Used 'Double Irish' Loophole to Dodge Billions in 2019 Taxes

Under the now-outlawed "double Irish" tax dodge, corporations transferred their intellectual property to holding companies registered in Ireland but run from tax havens like Bermuda, which siphoned off profits through royalty fees.

Google's European division used the "double Irish" tax haven loophole to dodge tens of billions in tax there and in the US in 2019, newly-filed accounts reveal.

The Big Tech giant took advantage of the sunset clause on the now-defunct corporate tax scheme to avoid tax on profits of $75.4 billion (€63 billion) in payments in both its home country and Ireland.

US-based parent company Alphabet used interim dividends and other payments to move money out of shell company Google Ireland Holdings, which was incorporated in Ireland but domiciled in Bermuda for tax purposes at the time.

That allowed Alphabet to declare a pre-tax profit in the US for that year of just $13 billion — which was effectively tax-free.

Google Ireland, the main operating company with some 4,000 staff, declared profits of €1.94 billion in 2019 after revenues of €45.7 billion, paying just €263 million in tax.

The so-called "double Irish" fix involved corporations registering their intellectual property (IP) in a company registered in Ireland but controlled from a tax haven such as those dotted around the Caribbean. Royalty payments to the company for that IP are taxed neither in the country where the group is headquartered or in Ireland, only in the tax haven — unless they are re-exported.

Ireland banned the dodge in 2015, but controversially allowed companies already using it a five-year grace period until the end of 2020.

Google insisted it had transferred its IP holding to the US, and that 2019 was the last year it exploited the loophole.

“In December 2019, in line with the OECD’s base erosion and profit shifting (BEPS) conclusions and changes to US and Irish tax laws, we simplified our corporate structure and started licensing our IP from the US, not Bermuda," a Google spokeswoman said. "The accounts filed today cover the 2019 financial year, before we made those changes."

“Including all annual and one-time income taxes over the past ten years, our global effective tax rate has been over 20 per cent, with more than 80 per cent of that tax due in the US,” she claimed.

But in 2018 Google Ireland Holdings paid out dividends of €23 billion after filing a turnover of turnover of just $25.7 billion (€21.5 billion). And accounts state that Google Ireland Holdings only became tax-resident in Ireland on January 1 2021.

European Union member state Ireland's corporate tax rate of 12.5 per cent — just over half the average across the bloc — has made it an attractive base for transnationals' European operations.

GOOGLE European headquarters buildings in Dublin

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×