Google On Tax Savings: “It’s Called Capitalism”

December 12, 2012

Google chairman Eric Schmidt has defended the company’s policies — which involve using a Bermuda shell company to save $2B in taxes — saying: “It’s called capitalism”.

Mr Schmidt said: “We pay lots of taxes; we pay them in the legally prescribed ways. I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.”

“It’s called capitalism,” he said. “We are proudly capitalistic. I’m not confused about this.”

Recently released regulatory filings showed that Google avoided $2 billion in taxes by passing $9.8 billion — around 80% of its profit — through a Bermuda shell company. The internet giant has come under fire in France, Britain and Australia for their tax policies.

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Comments (3)

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  1. Come Correct says:

    Hahaha pawned…

  2. Kathy says:

    It IS called capitalism!!! Smart business practices!!!

    The fact that France, Britain, Australia and the US are upset they don’t pay their fare share of taxes does not dissuade the average Google user from using their services. It is also called Global Competition!!!

  3. BermudianVoting says:

    It’s called “tax planning”. Everyone does it. Same reason you set up LLC’s or LP’s in the U.S. or other pass-through entities to “avoid tax”. This is how the world operates, including the U.S of A.