Posted by & filed under Company Analysis, Governments & Regulators.

Description:  Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda.

Source: Bloomberg.com
 
Date: 10/21/2010

Link: http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-revenue-lost-to-tax-loopholes.html

Questions for discussion:

  • Are Google’s actions unethical or illegal? 
  • What does this report have to say about the relationships between governments and international businesses?
  • Who are the winners and losers in this situation?
  • What should the governments and businesses involved do?
  • How does this situation affect investors?
  • Do you think the US government will go after the tax revenues missed through international structuring or do you think this is considered acceptable by government?
  • What are the arguments for allowing Google and other companies to dodge US taxes in this manner?

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