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Google Shifted $23 Billion To Tax Haven Bermuda in 2017, Filing Shows (reuters.com)
schwit1 shares a report: Google moved 19.9 billion euros ($22.7 billion) through a Dutch shell company to Bermuda in 2017, as part of an arrangement that allows it to reduce its foreign tax bill, according to documents filed at the Dutch Chamber of Commerce. The amount channeled through Google Netherlands Holdings BV was around 4 billion euros more than in 2016, the documents, filed on Dec. 21, showed. For more than a decade the arrangement has allowed Google owner Alphabet to enjoy an effective tax rate in the single digits on its non-U.S. profits, around a quarter the average tax rate in its overseas markets. The subsidiary in the Netherlands is used to shift revenue from royalties earned outside the United States to Google Ireland Holdings, an affiliate based in Bermuda, where companies pay no income tax.
For the avoidance of any doubt I do not condone arson, larceny or other illegal/antisocial actions.
That said, I would dearly love the following scenarios to play out:
A major fire to break out at an Amazon warehouse or Google office. When they call the (taxpayer funded) fire services they get told "oh we only operate the phones here - you'll have to source the water from Ireland, the crews from Luxembourg, the appliances from Bermuda... after all that's where you operate isn't it? You don't want to get involved with civil society - well provide your own protection through self funding then!"
Similarly for break-ins/vandalisation at Facebook's offices ... "here's a crime number for your insurers... we'll get back to you when we've dealt with incidents affecting those who do engage with civil society and contribute to the common good".
Or roadworks right outside the offices of Vodafone, Oracle, Microsoft - started and then de-prioritised to serve ordinary folk who pay their way - "yes, we'll get back to fixing your road in due course...".
After all disrupting these organisations wouldn't be a big loss because they don't pay much into society now anyway.
The "I'll keep whatever I can and get everyone else to cover externalities and emergencies" rejection of paying the same taxes as others do should come back to bite them when they discover they're neither all powerful nor an island sufficient unto themselves.
Now, whether the government provides good levels of service for the taxation raised is a separate debate; certainly there are many areas where it could do better. Enriching yourselves by demanding the same benefits as everyone whilst doing everything to avoid the common obligations is the behaviour of an antisocial bully.
Tax dodging. Define it as incorporating (directly or indirectly via a parent/holding/etc. corporation) in a nation in which the CxOs, board members, etc. and their immediate families do not physically reside for at least 51% of the year or in which they do not claim citizenship
No matter how smart you are in thinking you can close up the loopholes there are armies of accountants and lawyers who are WAAAY smarter and can figure out a way around it.
Meet Joe Islander. He has lived on the island his entire life where he is an aspiring surfer. He is our new CEO and his salary is a company-paid-for beachside house and fishing boat. Please address all high level corporate decision making to our former CEO and new executive ultra president Mr Big back in New York.
Etc, etc.