Google saved $2.4 billion in worldwide taxes in 2014 by shifting 10.7 billion euros ($12 billion) in international revenue to a Bermuda shell company, according to regulatory filings.
The EU accuses the furniture giant of funneling money through Lichtenstein and the Netherlands between 2009 and 2014.
Tax administration experts from 22 African countries were brought together on Monday in Dakar in a seminar to discuss transfer pricing, upon the initiative of the Exchange and studies center on tax administrations (CREDAF), in partnership with OECD.Transfer pricing refer to the internal transfer of prices between companies of the same group established in different tax jurisdictions.
According to a study by Thomson Reuters, 1 in 4 multinational can not meet the deadline for compliance with the Plan of Action BEPS ( acronym for Base Erosion and Profit Sharing) of the OECD. European companies are more prepared than those of America and Asia
Transfer pricing is one technique. A product made for, say $200, in China can be sold for $600 to another international subsidiary in a low tax country, which can then sell the product in Australia for $620, netting a taxable profit of just $20 in Australia.