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Google Shifted $23 Bln To Tax Haven Bermuda In 2017

Alphabet Inc.'s (GOOG,GOOGL) Google moved 19.9 billion euros through a Dutch shell company to Bermuda in 2017, as part of an arrangement that allows it to reduce its foreign tax bill, Reuters reported, citing documents filed at the Dutch Chamber of Commerce.

The amount channeled through Google Netherlands Holdings BV was around 4 billion euros more than in 2016, the documents, filed on Dec. 21, showed.

Google Netherlands Holdings paid 3.4 million euros in taxes in the Netherlands in 2017, the documents showed.

"We pay all of the taxes due and comply with the tax laws in every country we operate in around the world," Google said in a statement.

"Google, like other multinational companies, pays the vast majority of its corporate income tax in its home country, and we have paid a global effective tax rate of 26% over the last 10 years."

The report said that the subsidiary in the Netherlands is used to shift revenue from royalties earned outside the US to Google Ireland Holdings, an affiliate based in Bermuda, where companies pay no income tax.

The tax strategy, known as the "double Irish, Dutch sandwich", is legal and allows Google to avoid triggering US income taxes or European withholding taxes on the funds, which represent the bulk of its overseas profits.

However, under pressure from the European Union and the United States, Ireland in 2014 decided to phase out the arrangement, ending Google's tax advantages in 2020.

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