It has been reported that Google avoided paying $22.7 billion in tax in 2017 by using a Dutch shell company Google set up just for tax avoidance purposes. The Dutch shell company, which has no staff and is based in Amsterdam’s Zuidas business district, is used to move revenue from royalties earned outside the United States to Google Ireland Holdings which is registered in Bermuda where companies pay no income tax. The tax strategy, known as the ‘Double Irish, Dutch Sandwich’ isn’t illegal but very much frowned upon and despite Google being criticized in the past for not paying its fair share of tax Google carries on without a care in the world(literally).
In a statement, Alphabet Inc’s Google said: “We pay all of the taxes due and comply with the tax laws in every country we operate in around the world.” adding “Google, like other multinational companies, pays the vast majority of its corporate income tax in its home country.”.
This latest news coupled with other damning reports such as Google working with the Chinese government to create a fully censored search engine in China, will certainly not help Google’s increasing reputation as being a scummy company. Internet users may want to think again next time they are about to just “Google it”.