Google saved $2 billion in corporate income tax by shifting nearly $10 billion into a Bermuda shell company last year, according to reports.
Google sent about $9.8 billion in revenue to Bermuda, almost twice the amount from 2008, Bloomberg News reported.
The process is legal and widely used. By dropping its revenue into Bermuda, which has no corporate income tax, Google can save about half its tax rate. The $9.8 billion is close to 80 percent of the tech titan's pretax earnings. The news was disclosed in a Nov. 21 filing in the Netherlands.
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So far, countries in Europe aren't happy about Google ducking taxes. Recently the European Union's executive body urged countries to blacklist tax havens because they cost the EU $1.3 trillion a year.