Finance Finance News Tech giant to pay tiny tax bill

Tech giant to pay tiny tax bill

People working on laptops in front of the Google logo
The Australian Taxation Office has welcomed the settlement of a dispute with Google, resulting in a $481.5 million extra payment. Photo: AAP
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Google will pay just under $500,000 in tax in Australia, despite almost doubling its profits Down Under to $46.5 million.

It’s believed the Tax Office issued the international company with a $7.1 million tax bill for the year ending December 31, but after deductions the final bill will be $466,802, Fairfax reports.

It’s not known if Google is one of three multinational tech companies being audited by the Tax Office, on suspicion of shifting profits overseas, and a Google spokesman declined to comment, Fairfax says.

However, the spokesman said the company had paid $7.1 million in corporate taxes “and $15 million in payroll and other taxes in Australia as part of our investment in a local workforce of over 900 people”.

Australian profits rose to $46 million last year from $26 million a year earlier.

A spokesman for the Tax Justice Network, Mark Zirnsak, says more action is needed on companies operating in the digital economy to ensure they pay their fair share of tax.

Google denied it had only paid $466,802 in tax.

“We paid $7.1 million in corporate taxes and $15 million in payroll and other taxes in Australia,” a spokesperson said in a statement, adding that this was after deductions.

Google employs 900 people in Australia.