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{"source_url": "https://www.theverge.com", "url": "https://www.theverge.com/2019/12/31/21044662/google-end-tax-loophole-double-irish-dutch-sandwich-2020", "title": "Google will finally stop using controversial Irish and Dutch tax loopholes", "top_image": "https://cdn.vox-cdn.com/thumbor/BLAD8BQU4bvCfUrKfizzP7q4zCE=/0x146:2040x1214/fit-in/1200x630/cdn.vox-cdn.com/uploads/chorus_asset/file/10802091/acastro_180508_1777_google_IO_0003.jpg", "meta_img": "https://cdn.vox-cdn.com/thumbor/BLAD8BQU4bvCfUrKfizzP7q4zCE=/0x146:2040x1214/fit-in/1200x630/cdn.vox-cdn.com/uploads/chorus_asset/file/10802091/acastro_180508_1777_google_IO_0003.jpg", "images": ["https://cdn.vox-cdn.com/thumbor/Lj-pOUxs0S5JzFlxY5mirqYUKvM=/0x0:2040x1360/1200x800/filters:focal(857x517:1183x843)/cdn.vox-cdn.com/uploads/chorus_image/image/66002669/acastro_180508_1777_google_IO_0003.0.jpg", "https://cdn.vox-cdn.com/thumbor/BLAD8BQU4bvCfUrKfizzP7q4zCE=/0x146:2040x1214/fit-in/1200x630/cdn.vox-cdn.com/uploads/chorus_asset/file/10802091/acastro_180508_1777_google_IO_0003.jpg"], "movies": [], "text": "The era of Google using a pair of controversial loopholes to save billions of dollars in taxes on overseas ad revenue is coming to a close, according to a new report from Reuters. In 2020, the company will no longer take advantage of the so-called \u201cDouble Irish\u201d and \u201cDutch sandwich\u201d loopholes, which allowed it and countless other corporations to shift money from Ireland to the Netherlands and Bermuda, sheltering billions from taxes in the process.\n\nThe move comes as regulations aimed at changing how companies skirt taxes take effect in both the US and Ireland. Previously, multinational organizations like Google were able to use a network of affiliate organizations located in Ireland, the Netherlands, and Bermuda to collect and hold money made overseas, thanks in large part to lenient Irish tax laws.\n\nGoogle used companies in Ireland, the Netherlands, and Bermuda to collect and hold money earned overseas\n\nThe name comes from the strategy of moving money from an Irish subsidiary to a Dutch holding company, and then back to an Irish shell company located in Bermuda that has the rights to license Google intellectual property, thus the \u201cDutch sandwich\u201d in between. Bermuda has no corporate income tax, making it a lucrative final stop to report income. The whole process effectively avoids paying US income tax and European withholding taxes on overseas profits, although some money is still paid to the Irish government.\n\nIn 2014, facing mounting pressure from the EU and the US, Ireland closed these loopholes. Companies were given until 2020 to comply with the new regulations, which is why Google is just changing its tax structure now. Google continued to use the tax scheme to funnel money around the globe until the deadline. According to Reuters, the company moved $23 billion to Bermuda in 2017 alone using this tax avoidance strategy.\n\nIn the US, the Trump administration has also tried to incentivize companies to return profits to the US by lowering the corporate tax rate from 35 percent to 21 percent. The Tax Cuts and Jobs Act of 2018 allowed companies to return money made overseas to the US without facing more US taxes. These changes could prove critical for Google, which is sitting on tens of billions in overseas earnings.\n\n\u201cWe\u2019re now simplifying our corporate structure and will license our IP from the US, not Bermuda,\u201d a Google spokesperson told The Verge. \u201cIncluding 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.\u201d", "keywords": [], "meta_keywords": [""], "tags": [], "authors": ["Zoe Schiffer", "Dec"], "publish_date": "Tue Dec 31 00:00:00 2019", "summary": "", "article_html": "", "meta_description": "The company saved tens of billions of dollars over the years by moving money between Ireland, Bermuda, and the Netherlands. Now, it says it\u2019s \u2018simplifying\u2019 its corporate structure in line with new regulations.", "meta_lang": "en", "meta_favicon": "https://cdn.vox-cdn.com/uploads/chorus_asset/file/7395361/favicon-64x64.0.ico", "meta_data": {"viewport": "width=device-width, initial-scale=1, shrink-to-fit=no", "apple-mobile-web-app-title": "Verge", "article": {"publisher": "http://www.facebook.com/verge", "published_time": "2019-12-31T15:11:26-05:00", "modified_time": "2019-12-31T15:11:26-05:00"}, "author": "Zoe Schiffer", "style-tools": "https://www.theverge.com/style/community/372/8492e26473c2d330f5332b2c85f4ced9/tools.css", "google-site-verification": "IucFf_TKtbFFH8_YeFyEteQIwYPdANM1R46_U9DpAr4", "msvalidate.01": "D385D0326A3AE144205C298DB34B4E94", "ahrefs-site-verification": "1e57a609922037a3fbdc1c22efd7334113f174f15608f37e1b8538a7b4ce64c3", "description": "The company saved tens of billions of dollars over the years by moving money between Ireland, Bermuda, and the Netherlands. Now, it says it\u2019s \u2018simplifying\u2019 its corporate structure in line with new regulations.", "og": {"description": "The company saved billions of dollars in 2016 by moving money between Ireland, Bermuda, and the Netherlands.", "image": {"identifier": "https://cdn.vox-cdn.com/thumbor/BLAD8BQU4bvCfUrKfizzP7q4zCE=/0x146:2040x1214/fit-in/1200x630/cdn.vox-cdn.com/uploads/chorus_asset/file/10802091/acastro_180508_1777_google_IO_0003.jpg", "height": 630, "width": 1200}, "site_name": "The Verge", "title": "Google will finally stop using controversial Irish and Dutch tax loopholes", "type": "article", "url": "https://www.theverge.com/2019/12/31/21044662/google-end-tax-loophole-double-irish-dutch-sandwich-2020"}, "fb": {"app_id": 549923288395304}, "twitter": {"card": "summary_large_image", "url": "https://www.theverge.com/2019/12/31/21044662/google-end-tax-loophole-double-irish-dutch-sandwich-2020", "title": "Google will finally stop using controversial Irish and Dutch tax loopholes", "description": "The company saved billions of dollars in 2016 by moving money between Ireland, Bermuda, and the Netherlands.", "image": "https://cdn.vox-cdn.com/thumbor/vDhcIGxWbkVSEbr4rkYgwtUgPJI=/0x170:2040x1190/fit-in/1200x600/cdn.vox-cdn.com/uploads/chorus_asset/file/10802091/acastro_180508_1777_google_IO_0003.jpg", "site": "verge"}, "sailthru.title": "Google will finally stop using controversial Irish and Dutch tax loopholes", "sailthru.tags": "general,the-verge,front-page,google,business,us-world,tech,news", "sailthru.description": "The company saved tens of billions of dollars over the years by moving money between Ireland, Bermuda, and the Netherlands. Now, it says it\u2019s \u2018simplifying\u2019 its corporate structure in line with new regulations.", "sailthru.date": "2019-12-31T15:11:26-05:00", "sailthru.image.full": "https://cdn.vox-cdn.com/thumbor/0QNO3JRn7CA5p_YMiIYhqX5bnYQ=/0x106:2040x1254/1600x900/cdn.vox-cdn.com/uploads/chorus_image/image/66002668/acastro_180508_1777_google_IO_0003.0.jpg", "sailthru.image.thumb": "https://cdn.vox-cdn.com/thumbor/YAf33RPJY8c9BggE0J5Hx5Ia9Xg=/340x0:1700x1360/200x200/cdn.vox-cdn.com/uploads/chorus_image/image/66002668/acastro_180508_1777_google_IO_0003.0.jpg", "msapplication-TileImage": "https://cdn.vox-cdn.com/uploads/chorus_asset/file/7396113/221a67c8-a10f-11e6-8fae-983107008690.0.png", "msapplication-TileColor": "#393092", "outbrainsection": "google"}, "canonical_link": "https://www.theverge.com/2019/12/31/21044662/google-end-tax-loophole-double-irish-dutch-sandwich-2020"} |
