Posted on Slashdot 3 May 2012:
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. About that 'don't be evil' motto? Yeah. Not so much."
Search engine and advertising giant Google Australia has posted a wider full-year loss of almost $4 million, despite a sharp lift in revenue.
In a special purpose annual report for the year ended December 31, Google Australia posted a $3.93 million loss after income tax, down from a loss of $3.08 million in 2010.
Revenue from continuous operations was $201.1 million, up from $151.4 million the previous year.
Gross assets for the wholly owned local arm were $116 million and income tax expenses slumped, from $1.128 million to $74,176.
Google Australia, which is based in Sydney and has 568 employees, listed its principal activities as ‘‘to provide services, assistance and advice in connection with marketing and sales support for web search engine service and advertising services.
"Google Australia Pty Ltd additionally performs certain research and development services with respect to products, utilising Google RD Technology and other appropriate technology from Google."
It took on two new directors last year in Matthew Scott Sucherman and James Anthony Marocco, replacing John Kent Walker and Lloyd Martin in November.
Under the recently released Convergence Review’s recommendations to the federal government, Google would not be defined as a major media company, thereby escaping greater content regulations.
No dividends were paid.
LOL found at Fail Nation
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