Feeds

Google Oz slips A$600 million through tax loophole

The old Irish jig

  • alert
  • submit to reddit

Intelligent flash storage arrays

The Sydney Morning Herald has popped another installment in its long-running game of pinging Google’s Australian tax liability as revealed in its financial statements.

In spite of Australian revenues estimated by experts like Frost & Sullivan to be more than A$700 million, the Chocolate Factory’s performance in Australia looks abysmal. It claimed an A$3 million loss in Australia for 2010 and paid A$1 million in tax on booked revenue of A$151 million.

The rest of advertising giant’s Australian invoices are paid not to Google Australia, which merely provides services to other divisions of the company, but Google Ireland. This repatriates revenues to a country with a lower corporate tax rate than Australia.

Most of the income booked in Australia is in the form of service payments from the US parent company and other subsidiaries. The fiddle revenue moves to Singapore soon, with Google to shift Australian AdWords customers to its Asia-Pacific subsidiary headquartered in that country. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.