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Comment on Google agrees to pay £130m in back taxes after an audit by UK tax authoritiesparent

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Why are European profits declared in Ireland untaxed? I don't understand that part

You don't declare profits. You just invoice or lend between international elements of your group with timing such that at the end of year/quarter/reporting period in each jurisdiction you've lost money or made none.

A lot of money vanishes this way, a lot of money is invented this way.

Ahh. That's smart. I guess that's related to the other strategy I've heard of national HQs charging each other made-up sums in 'branding fees' to use the company logo.

Part of the EU rules is that it is a single market. However the Irish deal treats it as individual markets from the point of view of the Irish government and soobpy collects taxes on the Irish generated part.

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