As confirmed today by a Google spokesman, Alphabet, Google’s parent company, will no longer be using the “Double Irish, Dutch sandwich” intellectual property (IP) licensing scheme, which had been allowing it to delay paying U.S. taxes, Reuters is reporting.
According to the publication, Google’s 2018 tax filings show the company will scrap its current licensing structure in line with international rules and followed changes to U.S. tax law in 2017.
The filings also show that in 2018, Google moved 21.8 billion euros through its Dutch holding company to Bermuda, up from 19.9 billion in the year prior:
“A date of termination of the Company’s licensing activities has not yet been confirmed by senior leadership, however management expects that this termination will take place as of 31 December 2019 or during 2020,” the Dutch filing said.
“Consequently, the Company’s turnover and associated expense base generated from licensing activities will discontinue as of this date,” the filing with the Dutch Chamber of Commerce added.
The company says it will be simplifying its corporate structure and will now be licensing its IP from the US instead of Bermuda.