Google has decided to pay $481.5 million to the Australian Tax Office in a major win for the agency in its battle to force big technology companies to pay tax in Australia.
The settlement, which covers ten year worth of tax from the year 2008 to 2018, will also help to improve the federal budget surplus that was damaged by weak economic growth and the collapse of the Morrison government’s Robo-debt scheme.
The Australian Taxation Office said that Google’s settlement along with others made by the companies including Microsoft, Apple and Facebook, will bring the total extra amount of cash collected from e-commerce industry players to $1.25 billion. Changes include more audits of tech and resources companies through a special Australian Taxation Office taskforce and announcing a suite of laws designed to force tech companies to book sales made in Australia locally, rather than running them from a tax haven such as Singapore or Ireland. Mark Konza, the Deputy Commissioner, who has supervised much of the Australian Taxation Office’s work dealing with tax-shy multinationals, said that this settlement was another great outcome for the Australian tax system.
As a result, Google Australia made little or no profit on which it could be taxed by the Australian Taxation Office.