A case in point – maybe the most spectacular– is Google Alphabet, Google’s parent company. In 2003, less than a year before its initial public offering in August 2004, Google US transferred its search and advertising technologies to “Google Holdings”, a subsidiary incorporated in Ireland, but which for Irish tax purposes is a resident of Bermuda.
Ever since then, all the profits generated by these assets have ended up in Bermuda, after a (tax-free) detour via the Netherlands – the infamous “double Irish Dutch Sandwich”. In 2015, Google Alphabet reported $15.5bn in profits in Bermuda, where the corporate tax rate is a modest 0%. It is as if every Bermuda resident (almost none of whom actually work for Google) each generated $260,000 in profits for the company.
Vir: Gabriel Zucman, The Guardian