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Thread: Google avoids tax with ‘Double Irish Dutch Sandwich’

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    Politics.ie Member seabhcan's Avatar
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    Default Google avoids tax with ‘Double Irish Dutch Sandwich’

    Google avoids tax with ?Double Irish Dutch Sandwich? ? The Register

    We've all heard about this scheme, which is essentially used to avoid paying Irish corporate tax.

    In the example given in the article, when an Australian company pays for Google services, they actually pay to Google Ireland. Then, Google Ireland pays royalties to its parent company in Holland - meaning Google Ireland's profits are reduced on paper and they pay less tax on them. Then the Dutch company pays the money back to another Google-owned Irish company, which then pays it on to Barbados.

    Under Dutch law, and because EU member countries do not charge withholding taxes on transfers within the EU, the transfers to and from the Netherlands are essentially tax free.

    And under Irish tax law, the second Irish resident subsidiary is not taxed on the royalty payment because it is controlled by managers elsewhere.
    It sounds like it would be very easy to fix this by charging tax on the profits sent to Barbados. How much revenue does Ireland lose by allowing this to continue?

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    Politics.ie Member Analyzer's Avatar
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    sounds like they are acting the Bonox.
    Coveney's ambition is the be Ireland's next EU Commissar and Ireland will pay a price as he builds his CV to position himself sufficiently loyal to the nEU empire.

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Analyzer View Post
    sounds like they are acting the Bonox.
    Insightful.

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    Politics.ie Member TheWexfordInn's Avatar
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    For anyone who hasnt seen this Taiwanese video before, it gives an explanation of the "Double Irish" "Dutch sandwich" from 30 secs to 1 minute in.


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    Politics.ie Member firefly123's Avatar
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    Wasn't their message 'don't be evil' back when they started? I guess that's gone now.
    Life is hard
    That's why no-one survives

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    Politics.ie Member macs magic's Avatar
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    Default Google pays just 0.14% tax in seven years

    Saw this in the Independent.I doubt these guys would have cared if the USC was increased by 3% on 100,000 salaries when they pay 70 million in tax on 47 billion of sales.



    Google pays just 0.14% tax in seven years - Irish, Business - Independent.ie

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    We make a big contribution to the Irish economy by employing around 2,500 people in our European HQ in Dublin, helping hundreds of thousands of businesses to grow online and we've invested €75m in our recently opened data centre and another €226.9m in the acquisition of three office buildings in Dublin in 2011 alone.
    We have an obligation to our shareholders to run our business efficiently and we comply with all the tax rules in Ireland.

    Stunningly brazen. It inexplicably makes me feel a little bit pathetic, being associated via citizenship with the enablers of this situation.

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    So that is 0.02% per year, How close to ZERO is that in real terms, we are expected to pay more than that rate in property tax FFS

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    Those Sales do not occur here, they are only accounted for here.

    But the usual thicks will make a story out of it.

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    The British tax advisor said it best about Ireland not asking questions; not only do we have a strikingly low effective tax rate but crucially we don't audit multinationals. Obviously we should. Every attempt should be made to make the effective tax close to the low headline rate. If we don't do it, the EU/Brits/US will take their own measures which will be far more damaging to the Irish economy.

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