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Send  Share  RSS  Twitter  25 Sep 2014

INFOTECH: Google has Massive Overseas War Chest

 



Recent Western Cape Business News

Many companies in the United States have massive amounts of money stored offshore, supposedly reserved for offshore acquisitions. At the same time, while this money is kept offshore, these companies save on paying tax on the amounts in the USA.

Google is one of these companies –with an estimated $30 billion in its overseas coffers.

This is according to Christopher Riley, CEO of laptop and accessories retailer, The Notebook Company.

He said this information was divulged in a letter to the Securities and Exchanges Commission (SEC). The SEC now wants to know how Google is planning to reinvest these funds into its foreign subsidiaries, or into acquisitions.  The search engine behemoth did, however, remind the SEC that it doled out $1.4 billion on 20 acquisitions in 2013 – the bulk of this money going into the purchase of the Israeli social mapping start-up, Waze.

“Whichever way you look at it, $30 billion is a substantial war chest. Even if part of the reason is to reduce tax payments as much as possible – within the limits of the law – it is very likely that Google is looking seriously at a number of investments to safeguard its position as one of the top companies in the world,”said Riley.

At this stage Google has not revealed a timeline with regards to when, and how, it will spend money in offshore deals, or acquisitions. But the latest statistics show that half its income is derived from outside the USA.

 
 
 
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