Google’s tax in NZ

Stuff reports:

’s New Zealand subsidiary reported an annual loss of just over $60,000 and paid just $227,000 in in 2013, its latest accounts have revealed.

New Zealand businesses are believed to spend hundreds of millions of dollars annually on Google’s advertising services and software.

Yep, but they buy those from Google, not Google NZ. Google NZ did not invent the search engine we all use.

But Google is one of a number of technology multinationals that book most of their revenues in Ireland, enabling it to take advantage of legal tax rorts that are currently the focus of an attempted-clampdown by the Organisation for Economic Cooperation and Development (OECD).

The subsidiary turned over $10.1 million in 2013, according to accounts published by the Companies Office on Friday.

Google globally actually paid $2.3 billion in tax last year, which was an effective tax rate of 16%. Companies will incorporate in countries with lower corporate tax rates – but they still pay tax there.

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