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Google avoid paying our 12.5% RATE


TradCat

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This is the lead story on Drudge. They are even avoiding our 12.5% rate

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

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.
Weren't we working on the assumption that they were paying hear to cheat the Americans. Turns out they are cheating us too!
 


Monday Monday

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So the sacred cows our Corporation tax is supposed to attract don't even pay the corporation tax.

The boom got boomier and the bust gets bustier.
 

HarshBuzz

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simple statement; Google are not avoiding tax in Ireland

they are however using wholly-legal means to reduce their net global tax bill down to very low levels. None of this is illegal in any way.
 

wexfordman

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************************ it why not, sure absolutely every mother ************************************ is at it now!

I give up!
 

TradCat

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simple statement; Google are not avoiding tax in Ireland

they are however using wholly-legal means to reduce their net global tax bill down to very low levels. None of this is illegal in any way.
Of course they are avoiding tax. Nobody is accusing them of evading tax which would be illegal.
 

Cassandra Syndrome

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I Googled Irish Corporation Tax and nothing came up...
 

ocoonassa

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Eoin Dorgan, a spokesman for the Irish Department of Finance, declined to comment on Google’s strategies.
 

Barnacle

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The banks do similar things, shifting profits between companies, they often use lease companies to facilitate this.
 

TradCat

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So the sacred cow of our 12.5% rate is in fact an international joke. We might as well make it 30% because they don't pay it anyway. Or be honest an make it zero because we are not that pushed about collecting it.
 

firefly123

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Wasn't googles corporate motto "don't be evil" or something similar. I guess they have turned to the dark side.
 

HarshBuzz

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fix the law, don't randomly attack Google for taking advantage of it
 

Oldira1

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No doubt the tax experts in PWC have a hand in this.

Clean up advising the government on how to bail out the banks.

Clean up advising companies how to avoid paying ANY tax.

And we say professionals are not to blame.........
 

TradCat

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fix the law, don't randomly attack Google for taking advantage of it
Fix the law? Why? Do you think they should pay? I'm sure the people in the Dept. of Finance (the people who scared the bejesus out of Michael Noonan) know how much of a contribution Google, Microsoft et al make. If they are happy why should we worry? Let's concentrate on cutting pensions and taxing the low-paid.
 

DCon

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No doubt the tax experts in PWC have a hand in this.

Clean up advising the government on how to bail out the banks.

Clean up advising companies how to avoid paying ANY tax.

And we say professionals are not to blame.........
Don't forget they would also advise the gvernment on tax policy.

best way to ensure they are hired by Google is to have a seat at the table when the tax discussions are undertaken.
 

ocoonassa

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fix the law, don't randomly attack Google for taking advantage of it
Exactly it's abundantly clear from that article that it's not just Google who are doing the the “Double Irish” and the “Dutch Sandwich”

"As a strategy for limiting taxes, the Double Irish method is “very common at the moment, particularly with companies with intellectual property,” said Richard Murphy, director of U.K.- based Tax Research LLP. Murphy, who has worked on similar transactions, estimates that hundreds of multinationals use some version of the method."

When confronted by the journos the DoF wouldn't even comment instead giving some vague assurances that everything is OK.

WTF?
 

TradCat

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This is not Google's fault. We must be a very attractive proposition. A peaceful pleasant English speaking banana republic with a hard working well educated population and an utterly corrupt and useless political administration. What more could a corporation want.

But what's in it for us?
 

Garland Names the Skies

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This is not Google's fault. We must be a very attractive proposition. A peaceful pleasant English speaking banana republic with a hard working well educated population and an utterly corrupt and useless political administration. What more could a corporation want.

But what's in it for us?
How are they cheating exactly?
 

TradCat

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How are they cheating exactly?
This is all legal in the banana republic. But I consider it cheating.

The Dublin subsidiary sells advertising globally and was credited by Google with 88 percent of its $12.5 billion in non-U.S. sales in 2009.

The profits don’t stay with the Dublin subsidiary, which reported pretax income of less than 1 percent of sales in 2008, according to Irish records. That’s largely because it paid $5.4 billion in royalties to Google Ireland Holdings, which has its “effective centre of management” in Bermuda, according to company filings.
"Since the 1960s, Ireland has pursued a strategy of offering tax incentives to attract multinationals. A lesser-appreciated aspect of Ireland’s appeal is that it allows companies to shift income out of the country with minimal tax consequences, said Jim Stewart, a senior lecturer in finance at Trinity College’s school of business in Dublin"
 
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