The passage through the Netherlands was needed because a direct transfer to Bermuda would incur Irish withholding tax, the Irish Times said. Google Ireland Ltd generated ¬12.5 billion in revenue last year, paying ¬8 million in Irish tax and a further ¬12 million in foreign withholding tax, the paper said.
"We respect the tax laws in all the countries where we operate and we are convinced we respect Italian law as well," Google said in a prepared statement. "We will continue to collaborate with the local authorities to answer their questions in relation to Google Italy and our services."
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