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Regarding Google And Taxes

Corporate tax havens are commonplace, sure, but that didn't stop Bloomberg/Businessweek from looking into Google's unique approach to gaming the system. "To reduce its overseas tax bill, Google uses a complicated legal structure that has saved it $3.1 billion since 2007 and boosted last year's overall earnings by 26 percent," it writes.

"While many multinationals use similar structures, Google has managed to lower its overseas tax rate more than its peers in the technology sector." Indeed, Google's rate since 2007 has been 2.4%, while, Apple, Oracle, Microsoft, and IBM reported tax rates between 4.5% and 25.8% on their overseas earnings from 2007 to 2009. "It's remarkable that Google's effective rate is that low," Martin A. Sullivan, a tax economist who formerly worked for the U.S. Treasury Dept, tells Bloomberg/Businessweek. "This company operates throughout the world mostly in high-tax countries where the average corporate rate is well over 20 percent." Still, in case you're wondering, Bloomberg/Business is confident that Google operates within the realm of the law.

Read the whole story at Bloomberg/Businessweek »

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