Australia is struggling with offshore companies, all pay and Google too. Economy, finance, business. Australia

Australia is struggling with offshore companies, all pay and Google too

23 November, 2012

The Australian Government is preparing amendments to the tax laws of the country, that should significantly increase revenue by closing loopholes, enabling corporations, including Google, hiding offshore revenues and avoid taxation.

Deputy Minister of Finance of Australia David Brjedber said, Google Australia and many other companies have resorted to an offshore scheme «dual Irish-Dutch sandwich», to avoid paying Canberra taxes in full.

David Brjedber said «Australian advertisers are turning to Google Australia asking about placing their messages. But when they enter into a contract with an Internet company, It turns out, that they actually use the services of the Irish units». But the profit tax rate for corporations in Australia is 30%, and in Ireland it equals 12,5%.

Because of this Australia does put taxes and the Government of Australia will make the country's tax legislation necessary changes and amendments, that will contribute to the fight against offshore schemes.

The representatives stated Google, not way that does not violate the existing laws of Australia.