back to article Australia copies UK's Google tax on 'contrived' dodges

Australia has copied the United Kingdom's Government Digital Service and has now decided the UK's Google-busting Diverted Profits tax is also worth replicating. Australia's national budget was delivered on Tuesday and treasurer* Scott Morrison's speech introducing the year's planned government expenditure promised “a new …

  1. Tim Worstal

    Thre is a slight problem with this

    Which is that the Google Tax hasn't worked in the UK. Not even on Google.....that recent tax deal was absolutely nothing to do with the diverted profits tax and actually, the settlement itself frees Google from the diverted profits tax.

    1. Roland6 Silver badge

      Re: Thre is a slight problem with this

      Be interested in having a little background on your statement Tim.

      I was under the impression that the Google UK tax settlement was for tax years prior to the introduction to the UK laws and hence the jury is still out on whether the UK laws are or are not effective.

      1. I ain't Spartacus Gold badge

        Re: Thre is a slight problem with this

        We're going to have a tougher time dealing with this than Oz anyway. We're in the EU. One of the provisions of the single market is that you only have to set your company up in one jurisdiction, and pay tax there. So setting up in Ireland, operating from Ireland, and paying your corporation tax there is perfectly legal, and we could only stop it if we left the EU.

        On the other hand, Ireland allowing transactions not from Ireland to be corp tax free is presumably going to be ruled an illegal subsidy by the ECJ.

        Google were also, allegedly, selling advertising in the UK for a while, and then just having the Ireland office sign the contract. Which should surely have been UK money, to pay UK tax. Now the whole sales team is in Ireland, so there can't be an argument.

        1. J Bourne

          Re: Th[e]re is a slight problem with this

          If we can actually get a fair vote with a less apathetic turn out than usual on the whole EU referendum we'll be able to sort all of that out very soon. (wishful thinking, I know).

      2. Tim Worstal

        Re: Thre is a slight problem with this

        It was specifically noted that the deal freed Google from the future problem of the diverted profits tax. On hte basis that they're not diverting profits.

  2. JassMan Silver badge

    I hope those ozzies have paid for this.

    If they haven't paid the UK gov for this blatent rip-off, Baroness Neville-Rolfe will have them thrown in prison for 10 years.

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