IRS Auditing Google 328
theodp writes "Bloomberg reports that the IRS is auditing how Google shifted profits offshore to avoid taxes. According to Bloomberg, Google cuts its tax bill by about $1 billion a year using a technique that allocates profits to a unit managed out of a law firm in Bermuda, where there is no corporate income tax. In 2009, the most recent year for which records are available, this subsidiary collected 4.34 billion euros (about $6.1 billion) in royalties from a Google unit in the Netherlands. A spokesman for Google, whose stated mission is 'to organize the world's information and make it universally accessible and useful,' called the IRS probe 'a routine inquiry' and declined to comment further."
Re:some in Congress want this to be even easier... (Score:5, Informative)
The last time the US Congress did that, companies just re-purchased their own stock with the money they brought in. In other words, the only people who benefited from that stimulus were the top executives. The rest of us saw a 3 Dollar uptick in the stock price, and thought ourselves lucky we could get a dinner at a nice place through selling the stock.
Re:oops (Score:5, Informative)
...back taxes with outrageous interest and penalties?
Unless they committed a crime, the penalty is interest, just like with individuals. The interest rate is reasonable (currently 4% for individuals and corporations). On top of that, the IRS pays you interest (again 4%) if you overpay. I know it's popular in some circles to paint government as the ultimate evil in all things, but people will take you more seriously if you start with facts.