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Sony OZ Delivers Record Profit

Sony Australia who has gone from forking out millions in fines to the Australian Tax Office to delivering an $8.7 million dollar before tax profit up from $5.52M in 2017.

Revenues rose from $439M to $492M during the past year according to their latest filing with the Australian Securities and Competition Commission.

The Company claims that the revue increase came from increased sound, TV broadcasting equipment and digital cameras.

Sony who has not denied that they are pulling out of the smartphone market declares revenues from their gaming and PC division separately.

During the past year Sony has expanded their sales online via the Companies website while on Amazon Australia the Company is selling headphones, speakers an extensive range of Playstation products.

In the past Sony Australia has been in the cross hairs of Australian tax investigators.

Overseas Sony’s French subsidiary has been fined (US$19 million) for fixing retail prices.

In Australia the Company was forced to fork out over $20M following an investigation into transfer pricing.

The Australian government legislated a new Diverted Profits Tax (DPT) in March last year, which is intended to prevent the practice of multinational organisations shifting profits made in Australia offshore to avoid paying tax.

The DPT will hit multinationals with global revenue of more than AU$1 billion and Australian revenue of greater than AU$25 million with a 40 percent tax on all profits.

The tax is expected to see AU$100 million in revenue per year from 2018-19 stay on Australian soil.

The new legislation mirrors a law implemented in the United Kingdom, which is nicknamed the Google Tax after the search engine giant was ordered to pay the UK government £130 million in back taxes.