Google, Apple and Microsoft Squirm As Global Tax Schemes Scrutinized

An anonymous reader writes: Google, Apple and Microsoft chiefs were hauled in front of an Australian Senate Committee on Wednesday and forced to answer questions about their tax dodging structures. "Under questioning from Greens Senator Christine Milne, [Google's Maile Carnegie] revealed none of the revenue derived from Google's lucrative advertising business is taxed in Australia, rather it is booked in Singapore where the corporate tax rate is set at 17 per cent, as opposed to Australia's 30 per cent. ... However in the strongest defense yet of the company's complex tax structure, Ms Carnegie attempted to highlight the hypocrisy of criticising global technology companies for using the same approach that Australian mining firms, like Rio Tinto, use when deriving profits from China. 'These are international tax arrangements and what Google is doing in Australia is very very similar to what Australian companies are doing outside of Australia. I am not sitting here today trying to defend whether those practices are right or wrong, they are simply the way the global tax system is currently working and we are trying to operate within that.' Ms. Carnegie said it was up to the government to create a different system, which the company would then abide by."

Comments

Re:So - the fact that others are doing it makes it

[BarbaraHudson]

Mis-reporting income and expenses is fraud last time I looked. This goes for businesses where one division over-charges another to shift profits from one country to another. These practices are coming under increasing scrutiny globally.

Want to straighten the ad problem out fast? Sales tax in the country/state/county of purchase.

Re:Lower taxes

[BarbaraHudson]

If countries want tax revenue to stay in their countries, lower the tax rates to be come more competitive. After all, 17% of something is much better than 30% of nothing.

All that does is encourage a race to the bottom.