Google Europe managed to generate $7 billion in profits yet paid tax on only $50+ million. How is that possible? They're headquartered in Ireland to take advantage of its low 12.5% tax rate but even then get to duck out of paying much.
Google registered its intellectual property (the brand and technology such as Google's algorithms) in Bermuda, so it has to pay huge administrative fees to its subsidiary there for licensing and such. Result: A tiny tax bill, since their actual €5.5bn was only €45m after "administrative expenses" of €5.467bn paid to Bermuda. It's all completely legal, but the next time a government is trying to sell voters on subsidizing companies with the promise of huge jobs, huge tax income or saving the planet, keep in mind they have no idea what they are talking about.
Google is adored by Democrats, of course, due to heavy campaign contributions, but they also chopped off $3.1 billion in US taxes. Will anyone speak up about it? NBC didn't think its parent company's $0 in taxes were newsworthy so it is unlikely politicians will adhere to a higher ethical standard than Brian Williams.
How Google Saves Billions In Taxes
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