Google, the US search giant, has been facing some criticism lately for keeping approximately $30 billion overseas. Google currently derives over half its revenue overseas but avoids paying US taxes on the funds by keeping the cash offshore. In a report submitted to the U.S. Securities and Exchange Commission, Google has stated:
“It is reasonable to forecast that Google needs between $20 to $30 billion of foreign earnings to fund potential acquisitions of foreign targets and foreign technology rights from U.S. targets in 2013 and beyond.”
According to Bloomberg.com at the end of 2013, $33.6 billion of Google’s $58.7 billion we’re held overseas.
“If these funds are needed for our operations in the U.S., we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.”
Google has stated the funds have been earmarked for acquisitions and capital expenditures overseas.