Google avoided about $2 billion in worldwide income taxes in 2011 by shifting close to $10 billion in revenues into a Bermuda shell company. Bermuda, along with a handful of other locales, is notorious for providing offshore solutions to multinationals eager to structure cash flow operations to their greatest benefit. However, tax authorities increasingly are looking askance at these tactics — especially as many governments continue to struggle with lackluster economic growth.
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No Honor Among Multinationals When It Comes to Taxes
Posted by: Erika Morphy December 17, 2012 10:25 AMGoogle avoided about $2 billion in worldwide income taxes in 2011 by shifting close to $10 billion in revenues into a Bermuda shell company. Bermuda, along with a handful of other locales, is notorious for providing offshore solutions to multinationals eager to structure cash flow operations to their greatest benefit. However, tax authorities increasingly are looking askance at these tactics — especially as many governments continue to struggle with lackluster economic growth.