Google Avoided $2 Billion in Taxes by Stashing Money in Bermuda: Report
Technology Editor, CNBC.com
Google managed to avoid $2 billion in international income taxes in 2011 by moving a hefty sum of its revenues to subsidiaries in Bermuda, according to a report.
The search giant reportedly stashed $9.8 billion in revenues to its shell company in Bermuda — which doesn't have a corporate income tax — last year allowing the company to shave its overall tax rate by almost 50 percent, Bloomberg reported.
Google's Bermuda move was disclosed in a Nov. 21 filing by a subsidiary in the Netherlands. While the company's move to shift funds to the country was legal, it could spur the growing global criticism of corporate tax avoidance.
Just last week, the European Commission said that EU countries should work together to find a way to keep companies from avoiding taxes, which the EU claimed cost it over $1 trillion each year.
Google did not immediately respond to a request for comment.