Google to pay extra $481.5 million in tax dispute settlement

Mariam Cheik-Hussein
By Mariam Cheik-Hussein | 19 December 2019

Google has reached a settlement with The Australian Taxation Office (ATO) that will see it pay an additional $481.5 million.

The end of the dispute, which involves no admission of liability, looked into the tech giant’s tax practices from 2008-2018.

The additional payment from Google brings the total amount of tax collected from ecommerce giants to $1.25 billion.

“This settlement is another great outcome for the Australian Tax System,” says deputy commissioner Mark Konza.

“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.”

A Google spokesperson says the settlement provides “certainty in relation to future tax treatment”.

It comes following increased scrutiny over tax paid by tech players, including Facebook and Apple, and the introduction of the Multinational Anti-Avoidance Law. Under the new law, $7 billion in taxable sales has been returned to Australia.

Files from corporate regulator ASIC show Google made $4.2 billion in revenue and paid $26.483 million in tax in the year to December 2018.

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