Google To Fix Tax Affairs... In Australia
Looks like strong government can bring the shady tax policies of large enterprises to book, ensuring countries recognise the true tax owed on local sales.
Last year the Australian Federal Government changed its tax laws for companies earning over $1bn a year. It means that multi nationals have to provide details of off shore transactions with subsidiaries and created heavy fines for evasion.
Presumably this change in the law is what had prompted Google to start recognizing its Australian revenue in Australia, rather than booking it in Singapore as in previous years.
No word on what the potential benefit to the Australian government might be, but hopefully other organisations will soon follow suit.
If it works in Australia there's no reason for it not to work elsewhere.