Feeds

Google Oz slips A$600 million through tax loophole

The old Irish jig

  • alert
  • submit to reddit

The essential guide to IT transformation

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. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.