Log In

Reset Password

Island is looking at tax schemes used by multinationals

Bermuda’s role in tax avoidance schemes, such as those employed by multinationals like Google, is being examined, Premier Craig Cannonier said in a response to parliamentary questions.

“Does the Premier and his Government have any intention of extricating Bermuda from the tax avoidance networks comprised of countries such as Ireland, the British Virgin Islands and Luxembourg, which allow Bermuda-based global registered companies to considerably reduce their tax obligations in the countries in which their substantial business takes place?” asked Progressive Labour Party MP Rolfe Commissiong.

“Yes, we’ll continue to look at it. Yes,” Mr Cannonier said.

“In light of the fact that the aforementioned global companies are not part of the general insurance reinsurance risk management sectors why does Bermuda continue to facilitate these networks and/or allow Bermuda to be used by these companies?” Mr Commissiong then asked.

“It’s something that the Finance Ministry is continuing to take a look at,” the Premier responded.

Google avoids paying about $2 billion in taxes every year by shifting profits to a Bermuda subsidiary via Ireland and the Netherlands.

Earlier this week Mr Cannonier said that the UK should look at Ireland first if it wished to address Google’s tax avoidance strategy as Bermuda is “further down the chain.”

The European Union has estimated it is losing collectively about $1.3 trillion a year from tax avoidance schemes of multinationals such as Google, Amazon, Apple and Starbucks.

You must be Registered or to post comment or to vote.

Published June 24, 2013 at 9:00 am (Updated June 24, 2013 at 12:07 am)

Island is looking at tax schemes used by multinationals

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon