Google has been accused of saving billions of dollars in tax payments by channelling its money through low-tax countries.
According to Bloomberg, Google has avoided paying around $3.1 billion in taxes in the last three years by exploiting loopholes in the law.
The search giant is accused of using complicated techniques, such as the 'Double Irish' or the 'Dutch Sandwich' to pay just 2.4 per cent of its oversees income in tax.
Bloomberg explained that Google has a business unit called Google Ireland Holdings, which is responsible for its European search and advertising business.
The office for Google Ireland Holdings is located in Bermuda, which has low corporate taxes. The Bermuda unit also owns Google Ireland Limited, which employs 2,000 people in Dublin.
The billions of dollars earned from Google Ireland Limited are funnelled through Bermuda for low tax reasons, thereby saving billions of dollars for Google.
A Google spokeswoman said in a statement to Bloomberg: “Google's practices are very similar to those at countless other global companies operating across a wide range of industries.”