Google avoiding their tax obligations

[boomerang]

Locked/Repost: http://forums.anandtech.com/showthread.php?t=2114357

Fern
Super Moderator


Legally of course. Using tax schemes nicknamed the “Double Irish” and the “Dutch Sandwich”.

Yes, those bastions of Political Correctness, Social Justice and all causes liberal and progressive are just filthy capitalists at heart, expanding their bottom line at the expense of the poor and downtrodden.

Who'd a thunk?

Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes

“It’s remarkable that Google’s effective rate is that low,” said Martin A. Sullivan, a tax economist who formerly worked for the U.S. Treasury Department. “We know this company operates throughout the world mostly in high-tax countries where the average corporate rate is well over 20 percent.”

Google, the owner of the world’s most popular search engine, uses a strategy that has gained favor among such companies as Facebook Inc. and Microsoft Corp. The method takes advantage of Irish tax law to legally shuttle profits into and out of subsidiaries there, largely escaping the country’s 12.5 percent income tax. (See an interactive graphic on Google’s tax strategy here.)
The earnings wind up in island havens that levy no corporate income taxes at all. Companies that use the Double Irish arrangement avoid taxes at home and abroad as the U.S. government struggles to close a projected $1.4 trillion budget gap and European Union countries face a collective projected deficit of 868 billion euros.