Google Alphabet, the mother corporation of Google and
other subsidiaries has found an innovative way to evade
huge tax payments. We speak of no less than twenty
billion US$ using legal tricks. so how did they do that?

Alphabet has transferred 20 billion US$ to a dutch letterbox company on the Bermudas. The Bermudas are known to be a tax reduction and avoidance paradise. That’s why many big companies are using Cayman Islands, Delaware and the Bermudas to transfer high sums of money via these locations just to avoid big tax settlements in the countries where they run their business in.

While the “Double Irish with a Dutch Sandwich” tax avoidance trick is usually lifted in 2015, companies have a transition period till 2020 in order to decide where to pay their taxes in the future. So until this transition period expires, Alphabet will still try to avoid huge tax payments using this legal trick although it has been considered doubtful in the past.

The trick is the following: The company with it’s subsidiary in Ireland is transferring money via a company registered in the Netherlands to another holding in Ireland which has it’s tax liability on the Bermudas and thus evading huge tax payments to either Ireland or Netherlands or the country where their own headquarter location is located.

While the Dutch authorities have published documents that only show a gross profit of a mere 13.6 million US$ the tax to pay is 3.6 million US$ then. But it’s interesting to question the huge amount of 20 billion US$ profit due to the tax avoidance.

While this is ongoing the tax load for the common man might still increase so it’s only to hope that in 2020 the game will change when the tax trick above won’t be able to be used anymore.