Google Australia has reportedly paid just $74,000 in tax, while claiming revenues from Australian customers of over $201 million.
Delimiter reports that Google Australia’s sales and marketing operations are provided through Google’s subsidiaries in Ireland and the Asia-Pacific region, where company tax rates are lower.
As a result of the arrangements, Google is able to claim an on paper loss for its Australian division.
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The news comes after reports that Apple pays an effective tax rate of just 9.8% worldwide, and further highlights the difficulties governments face in collecting company tax revenues from online services.