Tax

Google may face new Australian tax laws: report

Reuters News
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Posted: May 30, 2012 2:37 PM

SYDNEY (Reuters) - Internet search giant Google Inc could be hit by planned tax laws aimed at stopping international firms transferring of profits from their Australian operations offshore, an Australian government minister was quoted as saying by media.

Google paid just A$74,176 in tax in Australia in 2010/11 on revenue of about A$900 million ($891 million), according to the Australian Financial Review (AFR).

"This is a problem that goes across all sectors, so we're bringing across legislation because we think we've got to ensure Australians get a fair share," Communications Minister Stephen Conroy said at a Sydney technology show, according to the AFR.

The Labor government delivered a promised surplus budget earlier this month, projecting a A$1.5 billion surplus in the year to June 2013, which it hopes will help keep the nation's AAA credit rating safe.

Small surpluses are also forecast for the following three years, restoring budget finances after a four straight years of deficit due to lower revenues and stimulus spending after the 2008 global financial crisis.

($1 = 1.0104 Australian dollars)

(Reported by Cecile Lefort)