Google Employees Resigning Over Google’s Involvement in Supplying AI to the U.S. Military’s Drone Program

AI used in Project Maven is supposed to decide when humans should be killed by the U.S. military drones. But all software has flaws that can be exploited, and the people writing the code the AI uses will have their own biases, which may be horrifying in practice. It’s also just wrong to further amplify the power (and advanced AI adds real power) of a program that has already lead to the bombings of civilian weddings on numerous occasions.

About a dozen Google employees have resigned in protest of the tech giant’s involvement in an artificial intelligence (AI) collaboration with the U.S. military, in which Google is participating to develop new kinds of drone technology.

“At some point, I realized I could not in good faith recommend anyone join Google, knowing what I knew,” one of the workers told Gizmodo. “I realized if I can’t recommend people join here, then why am I still here?”

The resignations follow Google’s failure to alter course despite approximately 4,000 of its employees signing a petition that urges Google to abandon its work with Project Maven, a Pentagon program focused on the targeting systems of the military’s armed drones. The company is reportedly contributing artificial intelligence technology to the program.

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Google “Dutch Sandwich” Tax Shelter Shielded $19.2 Billion in Taxes

The big tech companies generally aren’t criticized enough, and that’s despite the immense power that they wield. The Lupe Fiasco quote of “You should criticize power even if you agree with it” comes to mind and is thought-provoking.

Alphabet Inc.’s Google moved 15.9 billion euros ($19.2 billion) to a Bermuda shell company in 2016, regulatory filings in the Netherlands show — saving the company billions of dollars in taxes that year.

Google uses two structures, known as a “Double Irish” and a “Dutch Sandwich,” to shield the majority of its international profits from taxation. The setup involves shifting revenue from one Irish subsidiary to a Dutch company with no employees, and then on to a Bermuda mailbox owned by another Ireland-registered company.

The amount of money Google moved through this tax structure in 2016 was 7 percent higher than the year before, according to company filings with the Dutch Chamber of Commerce dated Dec. 22 and which were made available online Tuesday. News of the filings was first reported by the Dutch newspaper Het Financieele Dagblad.

[…]

The Irish government closed the tax loophole that permitted “Double Irish” tax arrangements in 2015. But companies already using the structure are allowed to continue employing it until the end of 2020.

According to U.S. financial filings, Google’s global effective tax rate in 2016 was 19.3 percent, which it achieved in part by shifting the majority of its international profit to the Bermuda-based entity. Applying that tax rate, Google would have saved $3.7 billion via the 2016 transfer.

[…]

For years, U.S. tax law has given American companies an incentive to keep their foreign earnings offshore by allowing them to defer U.S. taxes until they return those profits to the U.S. But that changes this year; the U.S. tax law passed last month will require companies to pay taxes on the overseas income they’ve stockpiled to date at one of two rates: 15.5 percent for income held as cash or cash equivalents and 8 percent for less liquid assets.

Going forward, U.S. companies that pay relatively low global effective tax rates — a sign that they’re using tax havens — would pay a minimum U.S. tax. That new tax, which begins at a rate of 10.5 percent, wouldn’t apply in cases where a company’s global effective tax rate is 13.125 percent or higher.

Google Ireland Ltd. collects most of the company’s international advertising revenue and then passes this money on to Dutch subsidiary Google Netherlands Holdings BV. A Google subsidiary in Singapore that collects most of the company’s revenue in the Asia-Pacific region does the same.

The Dutch company then transfers this money on to Google Ireland Holdings Unlimited, which has the right to license the search giant’s intellectual property outside the U.S. That company is based in Bermuda, which has no corporate income tax. The use of the two Irish entities is what gives the structure its “Double Irish” moniker and the use of the Netherlands subsidiary as a conduit between the two Irish companies is the “Dutch Sandwich.”

Also relevant is this article, published in December of last year: Google’s origin is partially based in research grants provided by the NSA and CIA.