Tax avoidance strategies
Google uses various tax avoidance strategies. On the list of largest technology companies by revenue, it pays the lowest taxes to the countries of origin of its revenues. Google between 2007 and 2010 saved $3.1 billion in taxes by shuttling non-U.S. profits through Ireland and the Netherlands and then to Bermuda. Such techniques lower its non-U.S. tax rate to 2.3 per cent, while normally the corporate tax rate in, for instance, the UK is 28 per cent.[227] This reportedly sparked a French investigation into Google's transfer pricing practices in 2012.[228]
In 2020, Google said it had overhauled its controversial global tax structure and consolidated all of its intellectual property holdings back to the U.S.[229]
Google Vice-president Matt Brittin testified to the Public Accounts Committee of the UK House of Commons that his UK sales team made no sales and hence owed no sales taxes to the UK.[230] In January 2016, Google reached a settlement with the UK to pay £130m in back taxes plus higher taxes in future.[231] In 2017, Google channeled $22.7 billion from the Netherlands to Bermuda to reduce its tax bill.[232]
In 2013, Google ranked 5th in lobbying spending, up from 213th in 2003. In 2012, the company ranked 2nd in campaign donations of technology and Internet sections.[233]