Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Google pays $227,074 of tax in New Zealand

Google pays $227,074 of tax in New Zealand

By Pam Graham

June 23 (BusinessDesk) – Google Inc is paying more tax in New Zealand than previously but its $227,074 tax bill in 2013 isn’t likely to stress a company with US$15.42 billion of revenue globally in the quarter ended March 31, 2014.

The Labour Party has been pushing the issue of the tiny amount of tax being collected from multi-national companies, targeting Facebook in particular. Revenue spokesman David Clark has argued the government should have the power to ban websites if multi-nationals making money from them don’t pay much tax locally.

Google’s global accounts show a 19 per cent increase in revenue in the first quarter compared to the first quarter of 2013.

The accounts for Google New Zealand for the year to Dec. 31, 2013 filed to the Companies Office show revenues of $10.13 million, up 49 per cent from the $6.8 million in 2012. That's more than twice the 21 percent increase in total online advertising across New Zealand last year to $471 million, according to Advertising Standards Authority figures.

The bulk of the revenue is from the provision of services, with $1,919 of interest income, and is unlikely to reflect the ultimate parent Google's advertising sales in New Zealand.

The income tax expense of $227,074 for 2013 is up from $165,526 the previous year and it reduced pre-tax income of $166,685 to a loss of $60,389 for the year.

Accountants have said international tax treaties are not coping with global digital businesses.

The Google New Zealand accounts have $2.3 million of service fees to the parent and $7.8 million of fees to other related parties.

The breakdown of expenses shows employee expenses of $3.9 million, down from $4.2 million last year and advertising and promotional expenses of $1.3 million, up massively from $253,449 last year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news