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In a remarkable tax maneuver, Google moved 10.7 billion euros (or $12 billion) through the Netherlands to Bermuda in 2014. As a result of this structuring, Google will earn most of its foreign income tax-free.

1. What is this tax strategy called and why? Why Bermuda?
2. Why has corporate tax avoidance risen to the top of political agendas in Europe?
3. How many employees does Google Netherlands Holdings NV have?
4. Discuss the difference between corporate tax fraud and corporate tax avoidance. What is your personal opinion of Google’s maneuver and what are some of the ways that these structurings could be minimized or eliminated?

Sterling, T. and T. Bergin. (2016). Google accounts show 11 billion euros moved via low tax ‘Dutch sandwich’ in 2014., Feb. 19 (Retrievable online at