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Google to pay nearly $500m in tax settlement

By Cameron Micallef · December 19 2019
Reading:
egg

Earn

Google to pay nearly $500m in tax settlement

By Cameron Micallef
December 19 2019
Reading:
egg
Google headquarters

Google to pay nearly $500m in tax settlement

author image
By Cameron Micallef · December 19 2019
Reading:
egg
Google headquarters

Technology giant Google has agreed to pay an extra $481.5 million in taxes to settle a decade-long dispute with the ATO over local taxes.

In what the Tax Office is hailing as a victory, Google joins the likes of Microsoft, Apple and Facebook who have combined paid $1.25 billion.

“This settlement is another great outcome for the Australian tax system,” deputy commissioner Mark Konza said.

“It adds to the significant success of the ATO in positively changing the behaviour of digital taxpayers and significantly increasing the tax they pay in Australia.

Federal Treasurer Josh Frydenberg said the settlement with the ATO and Google was strong evidence that the crackdown on multinational companies through new laws was working.

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“The government’s successful implementation of its Multinational Anti-Tax Avoidance Laws has seen many large businesses restructure their operations to be compliant with the law,” Mr Frydenberg said.

The minister noted that since establishing a Tax Avoidance Taskforce in 2016, the government has benefited from an additional $15.5 billion.

The announcement had little impact on Google’s parent company Alphabet’s share price, which fell by 0.22 per cent following the announcement.

The Tax Office alluded to further cases in the future as it expands its taskforce.

“The extension of the taskforce until 2023 will ensure that the ATO is able to continue to pursue these issues and provide assurance to the community that we are doing everything in our power to protect Australia’s tax base,” Mr Konza concluded.

Google to pay nearly $500m in tax settlement
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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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