€ 16 billion transferred from Ireland via the Netherlands up to the Bermudas
As has become known now, by using an aggressive tax planning strategy, Google channelled € 3.7 billion past the taxman in 2016. In doing so, the technology giant used a method, which is referred to as “Double Irish With A Dutch Sandwich” by experts. Google transferred € 16 billion from Google Ireland Limited, which receives all income generated in Europe, to the subsidiary Google Netherland Holding BV in the Netherlands, were profits were taxed based on very favourable conditions. Afterwards, the funds were transferred back to Ireland, this time to Google Ireland Holdings. Finally, the funds were transferred to the parent company on the Bermudas.
Aggressive tax tricks are still widespread
For Google, these laborious transactions resulted in tax savings of € 3.7 billion. However, as we have reported several times in the past, other international corporations such as Apple, Starbucks or Amazon are also adopting similar strategies. Money, which is missing in national public purses, and therefore is not available for investments in infrastructure, education or health.
Petition shall put public pressure on Prime and Finance Ministers
Such practices have to be a thing of the past. However, to achieve this it is necessary that decision-makers adopt legal measures, which close tax loopholes and render avoidance tricks impossible. Therefore, the No To Tax Havens campaign has launched a petition, which calls on the Prime and Finance Ministers in charge to take action against such tax swamps. Please join us in supporting the petition for more tax fairness!