Google moved 10.7 billion euros ($12 billion) through the Netherlands to Bermuda in 2014 in order avoid being highly taxed, Reuters reports, citing accounts for Google Netherlands Holdings BV published on Thursday. The accounts show that Google Netherlands Holdings BV transferred almost all its revenue, mainly royalties from an Irish affiliate through which most non-U.S. revenue is channeled, to a Bermuda-based, Irish-registered affiliate called Google Ireland Holdings.

Bermuda charges companies no income tax.

The tax strategy allows Google to avoid triggering U.S. income taxes or European withholding taxes on the funds, which represent the bulk of the group's overseas profits.

Google said the company follows the tax rules in all the countries where it operates.

The arrangement allowed Alphabet - the holding company Google is part of - to enjoy an effective tax rate of just 6 percent on its non-U.S. profits last year, around a quarter the average tax rate in its overseas markets.

Last week Google was called to testify to a UK parliamentary committee about a 130 million pounds ($186 million) back tax bill, agreed with the British tax authority in January.

The deal brought Google’s total British tax bill for 2005 to 2015 to around 200 million pounds, whereas its UK revenue amounted to 24 billion pounds.

Google Netherlands Holdings NV had a Dutch tax bill of just 2.8 million euros, its accounts showed.