Google speaks about losses in Australia, but pay taxes in Ireland

05.05.2012

The Australian division of the Google company published the financial report for 2011. According to the report expenses exceeded the income. At a turn 201 million US dollars the losses of the company is 3,9 million.

Recently Google in Australia only speaks about unprofitability. In 2008 losses was 8.8 million, in 2009 – 4,4, in 2010 – 3,1 million US dollars.

At that Google occupies not less than 88 % from volume of the Australian market on sale of advertizing services on the Internet that is about 1 billion US dollars a year.

The Irish division of the company is the recipient of the income of the most part of global sales of advertizing, including sales from Australia. In 2010 of Google declared the income of the Irish company of 10,1 billion, having paid a tax only 1,7 million US dollars.

Representatives of division of the Google company in Australia assure that all financial statements are made according to law requirements. 

Expert’s opinion

«Google is the largest search system belonging to Google Inc. corporation. And, naturally, at million turns would be simply silly not to structure the business.
And we see a classical example of optimization business of structure of the large company.
Everything is made within the law and quite legally for this reason Google feels so quietly and self-confidently. Work on license contracts for the purpose of minimization of taxes at royalty payment is competent creation of structure and use of agreements on avoidance of double taxation».

On the basis: http://google-au.blogspot.com/

Lomakina Irina ( the director of Moscow office of Honest & Bright )