Turnbull Questions Google’s Tax Bill

Opposition spokesman Malcolm Turnbull is wondering why search engine giant Google paid a very small tax in Australia despite an estimated revenue of $1 billion in Australia. Google has apparently only paid $74,176 according to the tax return filed for 2011.

Turnbull said that lawmakers are scratching their heads to address the growing digital economy. He added that tech giants like Google generate billions of dollars from the Australian market but they pay only a small portion of that revenue.

In his blog, Turnbull expressed his concern by saying this is a material erosion of Australia’s tax base and that Australian media companies are basically losing revenue because of these tech giants.

He said Google should quit saying the company has complied with the relevant regulations and laws. Turnbull added that a parliamentary committee should examine this issue.

And consistent with what Turnbull said, a Google spokesman said the tech giant abides by relevant taxation laws. The spokesman also declined to make any further comment.

Assistant treasurer David Bradbury, meanwhile, said that the transfer pricing legislation has been introduced. This should effectively ensure that multinational companies pay the appropriate taxes that are befitting their status.

The legislation also aims to address multinational companies’ practice of shifting properties within their other subsidiaries and companies to avoid paying more taxes.

A spokesman of Bradbury also said that while it is inappropriate to comment on the practices of individual companies, it is important that foreign companies, earning from the Australian market, pay their fair share of taxes, as well.

The spokesman also added that integrity must be maintained within the Australian income tax system.