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21 Oct 2010 15:26

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Biz: Based on their accounting, Google has a new mantra: “Don’t Pay Taxes”

  • 35% the current corporate tax rate in the United States
  • 2.4% the amount Google pays, thanks to fancy accounting source
  • » How do they do it? Well, the search giant uses income-shifting methods referred to by lawyers as the “Double Irish” and the “Dutch Sandwich,” which sound like endlessly fascinating names for avoiding taxes. It involves a lot of money-shifting between various countries – Ireland, Bermuda, The Netherlands. But the end result saved Google $3.1 billion in taxes in the last three years, which probably helps them afford investing in self-driving cars and stuff.