Earn
Google to pay nearly $500m in tax settlement
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.
Google to pay nearly $500m in tax settlement
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.
“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.
RELATED ARTICLES
About the author
About the author
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
