Bloomberg: Yahoo, Dell, and Google Are Dodging Taxes In the Netherlands

You connect the Netherlands with Tulips and THC , not revenue enhancement - escape , but that ’s exactly what some tech company are using the country for . According toBloomberg , Yahoo , Dell , and Google have set up berth in Holland for take advantage of the country ’s lenient tax laws and funnel millions and millions of dollarsinto off - shore subsidiaries .

How does it work ? house creatively move funds through shell companies using nicknames , like “ Dutch Sandwich , ” for example . With that tactic , Bloomberg articulate last year Google was able to route $ 10 million through a shell company in Bermuda via the Netherlands , which saved it $ 2 billion in worldwide taxes . Dell leveraged a subsidiary called Dell Global BV to ante up income taxes at a rate of one - tenth part of 1 percent on earnings of $ 2 billion in 2011 . But it has n’t even had an employee in Holland since 2009 . And Yahoo cut its bill by $ 42.8 million last year with similar strategies .

These underhand plays bring down ship’s company ’ tax bills but it also loses money for the Netherlands , which is none too proud of about it . It ’s not illegal , but it ’s not exactly fair . And there ’s growing angriness about tax fudge in the EU , especially in light of Europe ’s glowering economic state . The Dutch Parliament is moot revenue enhancement law this calendar week , but EU - wide change does n’t look promising , considering it would take unanimous approval from all 27 fellow member states . Regardless , it ’s not building tech party any good will in Europe . [ Bloomberg ]

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