There is a very indignant article in the Fairfax media today. Apparently Google doesn’t pay enough corporate income tax in Australia.
Pensioners, uni students, workers, families; we have all been told the age of entitlement is over. For Google, though, the halcyon days of entitlement remain in full swing.
Not only does Google Australia feel it is entitled to pay virtually no tax in this country, it also feels entitled to avail itself of tax breaks under Australia’s generous research and development incentive scheme.
So majestic is this company’s sense of entitlement that it has no qualms taking intellectual property that has been developed in this country and transferring it to Google entities elsewhere, despite claiming these R&D breaks.
So what does Google do? They sell advertising.
Google Australia is not what it appears to be. The Google that receives money from Australian advertisers – estimated at $2 billion a year – is in fact Google Singapore.
It seems to me that this is Fairfax’s business model too. It has a large on-line presence.
So the headline should read: “Competitor has more effective business model than we do”.