Here's How Google Avoids Paying Taxes...

There's a fascinating article by Lisa O'Carroll in the UK Guardian newspaper about corporate taxes and how Google [GOOG] uses Bermuda and Dublin, Ireland to shelter taxes.

Here's how it works:

- Google's HQ is in Dublin, which has the lowest corporate tax rate of 12.5%.
- Google, however, wants an ever lower rate so it charges its European business a massive administrative fee by its Bermuda subsidiary.

And that's how a profit of 5.5 billion Euros turns into just 45 million Euros that is taxable in Dublin.

Lisa O'Carroll explains: