Google Ireland paid only $5.6 m in corporation tax for 2010, despite reporting more than $10bn turnover.

Most of Google's revenue is routed out of Ireland in a legal tax scheme known as the "Double Irish." The company reportedly transfers profits from the Irish business to a tax haven in Bermuda, which ensures that the company pays far less tax than it would normally do.

The "Double Irish" tax efficiency, which is completely legal, allows profits from a multi-national to be routed through Ireland to a tax haven without being liable for corporation tax in Ireland.

Accounts show that Google Ireland Limited made a pre-tax profit of €18.5m last year, nearly two-thirds less than in 2009.

After-tax profit fell to €1.7m compared to €30.2m in 2009 but turnover increased by €2.2bn to €10.1bn.

The rise in turnover was offset by an increase in administrative expenses, which rose from €5.5bn to €7.2bn.

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