Mountain View, CA-based Search engine behemoth and world’s No. 1 internet service provider, Google LLC. parent Alphabet Inc., would no longer exercise an intellectual property licensing scheme called as the “Double Irish, Dutch Sandwich,” a technique to avoid taxes by using Irish and Dutch subsidiaries to shift profits to low or no tax jurisdiction areas, which had been allowing the California-based Alphabet Inc.
to delay paying off taxes in the United States until 2017, a 2018 tax filing seen by a press agency reporter had revealed on Tuesday, the 31st of December 2019. Aside from that, confirming the media headline, a spokesman for the CA-based leading internet service provider, Google LLC., was quoted saying on Tuesday (December 31st) that the Google parent, Alphabet Inc.
had been well in alignment with international legislations and it had deserted the “Double Irish, Dutch Sandwich” tax avoidance technique back in the 2017s and had been following US taxation laws since then. Besides, according to Dutch filings seen by a press agency reporter, in 2018, the Google LLC.
had shifted a lump-sum of $24.5 billion or €21.8 billion from its Dutch Holding Company to Bermuda, nonetheless, adding that the practice would end after 2019, the Dutch filing said, “A date of termination of the Company’s licensing activities has not yet been conﬁrmed by senior leadership, however management expects that this termination will take place as of 31 December 2019 or during 2020.
Consequently, the Company’s turnover and associated expense base generated from licensing activities will discontinue as of this date”.