Google’s Irish subsidiary has agreed to pay €218m (£183m) in back taxes to the Irish government, according to company filings.
The US tech company, which had been accused of avoiding hundreds of millions in tax across Europe through loopholes known as the “double Irish, Dutch sandwich”, said it had “agreed to the resolution of certain tax matters relating to prior years”.
Google Ireland said it would pay corporation tax of €622m for 2020, including the €218m backdated settlement and interest charges. The previous year Google Ireland paid taxes of €263m.
The company, which is part of the parent company Alphabet, promised last year that it would ditch the loopholes strategy, which allowed it to effectively shuffle revenues made across Europe offshore to places like Bermuda, where the tax rate was zero. A Bloomberg investigation showed the scheme allowed Google to cut its overseas tax rate to just 2.4%.
Google did not explain the reason for the back tax payment in its accounts and did not respond to request for comment. In the filing it said only: “Subsequent to year-end, the company agreed to the resolution of certain tax matters relating to prior years. This tax liability and associated interest are recognised in the current financial year.”
Paul Monaghan, chief executive and the Fair Tax Foundation, said: “There really is a disgraceful lack of transparency around Alphabet’s tax conduct, especially at the level of the Irish subsidiaries. Stakeholders…