Google has a reputation around the world for being the leading search engine, and perhaps global company, that’s always on the cusp of the latest digital technology. However, recently the company has been scrutinized for their decision to place about $10 billion in revenue in a Bermuda shell corporation in an effort to avoid nearly $2 billion in global taxes.
To put this number into perspective, just three years ago Google didn’t place half as much money in such a shell company. The reason Google, and many other large corporations like it, moves funds every year to Bermuda is simply because it does not have a corporate income tax. This allows for companies to slice their tax rates nearly in half every year. This transfer also allows for corporations like Google to boost revenue in times of economic hardship.
Though the transferring of funds to Bermuda is completely legal companies around the world are criticizing the multi billion-dollar corporation for avoiding such taxes. However, Google’s rebuttal is simply that they not only comply with all tax rules but also help employ thousands of individuals around the world each year and have helped thousands of businesses grow and expand with their various services and support.