In Australia, Google Pays Just $74k Tax On Claimed Revenues of $200 Million

daria42 writes "Looks like Apple isn't the only company with interesting offshore taxation practices. The financial statements for Google's Australian subsidiary show the company told the Australian Government it made just $200 million in revenue in 2011 in Australia, despite local industry estimating it actually brought in closer to $1 billion. The rest was funnelled through Google's Irish subsidiary and not disclosed in Australia. Consequently the company only disclosed taxation costs in Australia of $74,000. Not bad work if you can get it — which Google apparently can."

Comments

"Revenue" is a useless measure

[Anonymous Coward]

Corporation tax is charged against profit, not revenue.

A successful, well-run company can easily have a profit of $1 on revenues of billions and therefore pay only 25 cents tax.

If a company is making millions and billions in revenue it usually indicates that they are ( 1 ) not paying realistic dividends to holders of preference chares and ( 2 ) they are not investing internally in R&D. Both those are booked against the profit & loss account.

Re:Taxes suck.

[Kotakee]

Google was one of the first companies to appear on Slashdot on these shady tax practices. I find it pretty funny that Slashdotters don't remember it and now there's been several stories about Apple and Microsoft doing it.

Seriously, http://tech.slashdot.org/story/10/10/21/1627220/how-google-avoided-paying-60-billion-in-taxes . Back in 2010.

Google only pays a 2.4% tax rate using money-funneling techniques known as the 'Double Irish' and the 'Dutch Sandwich,' even though the US corporate income tax is 35%. By using Irish loopholes, money is transferred legally between subsidiaries and ends up in island sanctuaries that have no income tax, giving Google the lowest tax rate amongst its technology peers. Facebook is planning to use the same strategy.

Re:I beg to differ

[Maxo-Texas]

Actually, you are mistaken.

The total tax load on the lower income (minimum wage) is about 28%.
The total tax load on the middle income is about 42%.
The total tax load on the upper income is about 23%.
The total tax load on the top .5% is about 19%.
And the total tax load on the wealthiest (.1%) is about 17% and will be until taxes on dividends and income go up or we flat out tax wealth.

Homeless people are dead on average by 47.
Homeless women are dead on average by 43.
In first world countries.

They clean the bodies up quickly.

"Total tax load" is state and local taxes + excise taxes + property tax (which is in your rent too- just hidden). Really have to watch out for the republicans latest "pay no FEDERAL" taxes. Because it really ignores the total tax people pay by income.

There are about 50-70 Excise taxes depending on your state.
Electricity, water, cigarettes, booze, gasoline, car, bicycle, etc. etc.

And total taxes were above 90% on the wealthy in the 1950's.
The peak was 92% on income over $400,000 per year in 1952.
That was too far in one direction. But 17% is too far in the other direction.

The things Google and other companies are going makes me wonder why we allow them to stay in business. Just discorporate them or make their product illegal if they are not benefiting your society. It would be trivial for Australia to basically ban Google in Australia until they payed a fair tax on Australian income.