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
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
×