Google moved over €28bn through State in tax scheme
Scale of tech giant’s financial operations in Dublin revealed via papers filed in Holland
Google employs more than 2,200 people in Dublin, which serves as its headquarters for Europe, the Middle East and Africa. Photograph: Getty Images
Google’s main Irish unit handled transactions worth €28.7 billion over three years as part of an international tax avoidance scheme, company documents show.
The documents, filed to the Dutch authorities, reveal the scale of Google’s financial operations in Dublin for the first time.
The company has been embroiled in controversy for years over its efforts to avoid tax on the profits made by its internet search engine and advertising operations. These controversies – and others surrounding firms such as Apple – have fanned criticism of Ireland’s corporate tax regime.
The scheme plays on differences between tax law in Ireland and other jurisdictions such as the tax haven of Bermuda. As a result, Google can cut tax payments by moving money between subsidiaries in different countries.
The main Irish entity in these arrangements is a company called Google Ireland Holdings, owned by Google in Bermuda. This is an unlimited company for which financial information has not been publicly available since 2006.
However, the scale of its operations has now emerged via the reporting of transactions with a subsidiary called Google Netherlands Holdings BV.
There was no comment last night from Google’s spokeswoman on the filings in the Netherlands. “Google complies with the tax laws in every country where we operate,” she said.