Google’s Aussie Tax Bill Is Quite Low, Considering
Despite raking in over $5 billion in revenue from Australian customers over the past calendar year, Google’s latest financial report shows it paid a mere $76 million in taxes to our government.
The papers, filed to ASIC, show $5.2 billion in gross revenue for 2020, including $4.4 billion in advertising revenue. Due to the company filing its ad profits offshore, under its Google Asia Pacific division, it only paid income tax on an amount of $239 million.
“The group reports revenue from advertising and other service sales net of associated direct cost of sales, as the performance obligation is to facilitate the sale of advertising between Google Asia Pacific and the advertiser, for which the group earns a commission,” Google’s report notes.
“The group notes that it is the agent in the transaction as it does not control the advertising inventory before it is transferred to the advertiser.”
“In the 2020 calendar year, Google Australia made a pre-tax profit of $239m resulting in a current income tax charge of $76m, and invested over $1bn in our Australian operations,” she said.
Google paid Aussie employees a total of $715m during the 2020 financial year, according to its own report.