Google is one of the biggest collection of companies in the world. Wisely, Google has divided itself into many companies to deal with the different tax laws not only in the Fifty United States but in dealing with worldwide taxes. By using proper tax planning, Google is effectively avoiding taxes in many countries.

In order to be subject to taxation in a given country, a business must have “Nexus” in that country. The word Nexus comes from the same root as “connection”. Typically that means a company must have an actual physical presence in the country.

Google has been very wise in its tax planning. It has its main business in Bermuda, a low tax country, and in the Republic of Ireland, also a low tax country. Google has set up a separate entity in the United Kingdom as a “technology and marketing” company. The idea is that technical services are performed by the UK subsidiary as well Read More