Financial Officers raid Google Offices in Paris, France, as part of investigation into the firm's tax payments

The video discusses Google's global operations and its practice of profit shifting, which involves funneling profits through its European headquarters in Dublin to offshore accounts. This legal process allows Google to benefit from Ireland's low corporation tax and special rules for transferring money to Bermuda. The video also covers Google's tax controversies in the UK, where it agreed to pay £130 million, and in France, where authorities demand full payment of £1.3 billion. The ongoing investigations by European tax authorities are highlighted, indicating potential changes in Google's tax strategies.

What is the term used to describe the legal process of moving profits to minimize tax liabilities?

• Tax evasion

• Tax laundering

• Profit shifting

• Revenue hiding

Why is Ireland an attractive location for companies like Google?

• It has a high corporate tax rate.

• It offers tax incentives for local businesses.

• It allows profits to be transferred to Bermuda tax-free.

• It has strict tax regulations.

What was the reaction in the UK to Google's tax settlement?

• It was praised for its fairness.

• It was criticized for being too lenient.

• It was ignored by the public.

• It was celebrated as a victory for tax justice.

How do French authorities approach tax negotiations with companies?

• They demand full payment without negotiation.

• They prefer to settle for partial payments.

• They are open to negotiations.

• They offer tax breaks for compliance.

What might Google need to reconsider due to European tax investigations?

• Its low tax profit generation methods

• Its marketing campaigns

• Its product pricing strategy

• Its employee benefits