Google Oz Pays More Tax Following Avoidance Crackdown
Chalk one up to Australia’s Taxation Department. Google Australia has restructured its local advertising revenue operations as the result of a sustained government crackdown on multinational tax evasion.
The company lodged its 2015 report with the Australian Securities and Investment Commission on Friday, revealing revenue of $502 million, a net profit of $47.1 million – and a $16 million tax bill.
That compares with the $11.7 million Google paid in tax in the previous year, when it reported revenue of $439 million and net profit of $59 million.
The Tax Office has been auditing Google results, along with those of several other international giants’ Australian operations, including Apple.
Google’s Australian operation was previously claimed to provide sales and marketing services to Google Singapore and Google Ireland. No search revenue – which has been estimated to bring in around $2 billion a year in Australia – has been billed locally.
However in its latest report Google Australia said it had restructured in January to recognise revenue from the marketing and selling of services to Australian-based customers.
Under a new multinational anti-avoidance law introduced by the Coalition Government earlier this year, companies with annual global revenue of more than $1 billion can face double taxation if they are found to have moved profits offshore.