Google Ireland, the tech company’s main operating Irish subsidiary with over 4,000 employees, recorded €45.7 billion in revenues in 2019 with pretax profits amounting to €1.94 billion. It paid €263 million in tax that year, down nearly €9 million versus 2018.
The companies’ financial accounts showed Australians paid Google $4.3 billion and Facebook more than half a billion dollars for services in 2018. But for the year ending December 31, Google had a corporate tax expense of only $26.5 million in Australia, and Facebook paid just $11.8 million. Google still fighting the ATO over its taxes.
Alphabet, the parent company of Google, posted a $4.7 billion tax expense, or 19%. Such “avoision” will continue as long as foreign income is subject to lower rates than domestic.
The company had $49.1 million in tax payable, but a $681,000 adjustment for prior years and a $21.9 million deferment meant Google only paid $26.5 million. The company now employs 1,500 people in Australia .
How much money does Google make a year?
While Google recorded total revenue of $1.07 billion for the year to December 31, including $560.6 million of advertising and other reseller revenue, it reported a pre-tax profit of just $155.9 million.
How did Google Ireland Holdings make $13 billion profit in 2019?
The holding company reported a $13 billion pretax profit for 2019, which was effectively tax-free, the accounts show. A year earlier, Google Ireland Holdings paid out dividends of €23 billion, having recorded turnover of $25.7 billion.
How much should tech companies have paid in taxes under Trump?
The companies, which include tech giants such as Amazon and Netflix, should have paid a collective $16.4 billion in federal income taxes based on the Tax Cuts and Jobs Act’s 21 percent corporate tax rate, according to the left-leaning Institute on Taxation and Economic Policy.