Google settles case with ATO, agrees to pay $481.5m
Google has agreed to pay the ATO $481.5 million to settle a decade-long legal battle, bringing the collections made against taxpayers in the e-commerce industry to around $1.25 billion cash.
E-commerce giant Google has announced that it has settled its tax dispute with the Australian Taxation Office (ATO) with a payment of an extra $481.5 million on top of its previous tax payments.
They join the likes of Microsoft, Apple and Facebook, which have all publicly stated that they have settled their tax affairs with the ATO.
This result brings the increased collections made against taxpayers in the e-commerce industry to around $1.25 billion cash.
The ATO opined that the Tax Avoidance Taskforce and the introduction of the Multinational Anti-Avoidance Law (MAAL) have ensured Australian sourced sales by these digital giants are returned to Australia’s tax base.
The operation of the MAAL has already seen $7 billion in taxable sales being returned to Australia. That’s $7 billion in sales booked, and the appropriate profit of these activities taxed, in Australia for the first time and locked in for the future. It has also led to the resolution of cases that had over $1 billion in back tax assessments.
“This settlement is another great outcome for the Australian tax system,” ATO 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.
“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.”