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> Google Netherlands Holdings BV paid 3.4 million euros in taxes in the Netherlands in 2017, the documents showed, on a gross profit of 13.6 million euros The
by Maarten88 8y ago
> Google Netherlands Holdings BV paid 3.4 million euros in taxes in the Netherlands in 2017, the documents showed, on a gross profit of 13.6 million euros
The Netherlands is an economy about the size of California, the reason Google only makes 13.6 million here is that they make the subsidiary pay a lot of royalties to a Bermuda Google entity, who probably bought these rights internally from the Google Corp for a price that was way too low. They can price these royalties anything they want, so it will always be an amount that leaves a maginal profit.
> This is legal.
Of course they say that, but it depends on many things, such as the fairness of their internal pricing. If those prices are not fair, the arrangement may not be legal.