Alphabet Inc’s Google was able to save $3.6 billion in global taxes in 2015 by using a system of loopholes called ‘Dutch Sandwich’ and ‘Double Irish,’ reported Bloomberg.
In the reports, Bloomberg revealed that Alphabet moved about $15.5 billion to a Bermuda shell company, according to a regulatory filling in the Netherlands.
The company managed to shift 40 per cent of its profits, greater than in 2014, through its Dutch subsidiary, Google Netherlands Holdings to Bermuda.
Alphabet moves the bulk of its non-US profits through this Dutch subsidiary, which has no employees. The company has used the Netherlands company since 2004 as part of a tax structure dubbed a "Double Irish" and a "Dutch sandwich."
By moving most of its international profits to Bermuda, the company was able to reduce its effective tax rate outside the US to 6.4 per cent in 2015, according to Alphabet’s filings with the US Securities and Exchange Commission, reported Bloomberg.
