Tuesday, October 3, 2023
 
 

Google to end controversial Dutch, Irish tax scheme

- Advertisement -

Google’s parent company Alphabet will stop using an intellectual property licensing scheme, known as the “Double Irish, Dutch sandwich”, which allowed it to delay paying US taxes.
“We’re now simplifying our corporate structure and will license our IP (intellectual property) from the US, not Bermuda. Including all annual and one-time income taxes over the past ten years, our global effective tax rate has been over 23%, with more than 80% of that tax due in the US”, a spokesman said.
The move is seen as an end to a controversy, as experts have repeatedly warned that Google was using loopholes to avoid paying taxes on overseas ad revenue.
The “Double Irish, Dutch sandwich” is a strategy that avoids paying US income tax by moving money from an Irish subsidiary to a Dutch holding company, and back to an Irish shell company in Bermuda, which has no corporate income tax.
Under increased pressure from both the EU and the US, Ireland closed the loopholes in 2014 and gave companies a deadline until 2020 to comply with the new regulations.
“A date of termination of the Company’s licensing activities has not yet been confirmed by senior leadership, however, management expects that this termination will take place as of 31 December 2019 or during 2020”, the company said in its filing.
Google has always said it pays all its taxes.

- Advertisement -

Subscribe to our newsletter

Latest

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Don't miss

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Europe’s lawmakers see opportunity for regime change a year after Iran’s latest uprising

On September 21, representatives of various political groups held...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the United States by the end of November when Israel officially becomes the 41st member of...

US Special Representative for Ukraine’s Economic Recovery announced

President Joe Biden announced on September 14 the appointment of Penny Pritzker as the US Special Representative for Ukraine’s Economic Recovery.In this role, she...

US-ASEAN establish a research center in Washington, D.C.

Vice President Kamala Harris, who was in Jakarta for a US-ASEAN Summit on September 6, announced Washington’s decision to establish a joint center with...

Can Central Asia escape China’s debt trap?

While Washington focuses on the war in Ukraine, Russia and China seek to expand their influence in regions where the US is not sufficiently...

US-UK Strategic Sanctions Dialogue inaugurated

Building on the unique economic and security partnership between the two nations, the US Department of State hosted a senior UK government delegation for...

GoatChat AI founder believes technology has ‘limitless’ potential

Artificial intelligence, including generative AI systems based on models that include ChatGPT, has grown rapidly and opened up immeasurable opportunities for businesses, better governance,...

Strong US support for Minnesota’s 2027 Expo bid

The next General Assembly of the Bureau International des Expositions, better known by its acronym ‘BIE’, will take place June 20-21 in Paris where...

Washington issues reward offer for Russian ransomware actor

On May 16, the State Department announced a reward offer, under the Transnational Organized Crime Rewards Program, of up to $10 million, for information...