Google Moves Assets to US as Dutch Sandwich 2020 Deadline Approaches

After months of pressure from OECD, FATF and other financial intermediaries, Google has announced its decision to drop the Irish tax scheme it has used to divert its taxable profits into low-tax jurisdictions for the last several years.

The scheme is based on a peculiarity in the Irish tax system legally allowing companies to incorporate there while remaining tax-resident somewhere else, so funds could controversially be placed in Irish subsidiaries that were not taxed either there or in the US. Ireland withdrew the exemption for new companies back in 2015, however approved those already using it to remain doing so until the end of this year (in 2020).