Miraculously, Google Only 2.4 Percent Tax

Miraculously, Google Only 2.4 Percent Tax - Outsmart the financial statements in order to avoid a large tax levy should not have to be done illegally. Tips to avoid a big tax was made Google so that the giant Internet companies can save on tax expenditures to 3.1 billion U.S. dollars in the last three years or 26 percent of revenue last year.

Savings are in fact only for revenue outside the U.S.. In Uncle Sam's country alone, Google's annual taxable income 35 percent. To avoid the taxes from their income outside the U.S., Google is distributing the revenues to several countries. Transfer of Google's profits to another country legally under the provisions by using rules that are often called the Irish and Dutch Double Sandwich.

Online ad revenue earned from the famous British high taxes apply to 28 percent and other European nations immediately transferred to the Irish tax on 12.5 percent. However, not to cut taxes, the income tax was rushed to the Netherlands which are low and eventually almost 100 per cent recorded in Bermuda the lowest tax.

"One wonders if Google's tax burden as low as that," said Martin A Sullivan, a tax expert who has worked in financial institutions of uncle Sam, was quoted by Bloomberg, on Friday (10/22/2010). "We know, this company operates globally, mostly in countries with tax levies above 20 percent."

However, until now, Google's efforts to avoid the high tax burden has not been considered as an act of infringement in its tax. "Google's efforts are just like thousands of other global corporations operating in various fields of industry," said Google spokesman based in Mountain View, California.