Google dampens talk on boost to Irish activity

Internet giant plays down speculation it is considering closing Bermudan arm

Google has played down speculation in France that it is considering shutting its Bermudan arm and boosting its operations in Dublin, following the closure of the Double Irish tax loophole in last week’s budget.

Le Monde yesterday reported that Google has for months been “secretly” weighing up the potential move at “board and management level”, to maximise the benefit to the company of Ireland’s low 12.5 per cent corporation tax rate.

According to the report, a move to consolidate more of its international operations in Ireland is being championed by Patrick Richette, the company’s chief financial officer. It said the debate is “controversial” within the company and that some shareholders are opposed to the plan.

Le Monde speculated that the potential move to shut its Bermudan operation, the tax benefits of which will be eroded when the Double Irish scheme ends in 2020, would be designed to restore its reputation after several years of criticism internationally for its aggressive tax planning.

Clampdown

It was also portrayed as an attempt to get ahead of new tax standards being formulated by the Organisation for Economic Co-operation and Development, which are designed to clamp down on corporate tax loopholes.

Google Ireland declined to comment, referring instead to a statement from the company last week that said it is “committed” to Ireland and will follow all tax rules in the countries where it operates.

Google employs more than 2,500 people at its European, Middle Eastern and African headquarters on Barrow Street in Dublin’s docklands.