It was a surprising revelation, 30 Billion $ US company, Google pays just 2.4% of the profits as taxes when corporate tax in USA is 35% .. They have saved more than 3billion dollars in last few years .. how ?
They adapt a popular strategy known as the Double Irish. Google has incorporated two subsidiaries in Ireland. One is a holding company in Bermuda, the other is located in Ireland.
In Ireland, intellectual property royalties has lower income tax rates of 12.5%. Google’s Irish company in Ireland pays those royalties to its Irish company in tax-haven Bermuda and again funneling them through the tax-advantaged Netherlands on the way and end up paying just 2.4% in taxes. How this is some financial engineering.
Google should now start offering tax consulting too apart from internet services.