Bloomberg: Google Saved $3.1 Billion In 3 Years Because Of Tax Loopholes
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Bloomberg did some research about how tech companies used a strategy called “Double Irish” and “Dutch Sandwich” to reduce overseas tax rate to 2.4%. Google Inc. (NASDAQ:GOOG) was able to cut their taxes by $3.1 billion in 3 years by moving foreign profits through Ireland and the Netherlands to Bermuda.
Google, Facebook, and Microsoft takes advantage of Irish tax law to legally move profits into and out of subsidiaries there. This way they can escape the country’s 12.5% income tax. Then the earnings end up in island havens that have no corporate income taxes at all. The Double Irish arrangement lets these companies avoid taxes at home.