NEWS

Time for Fairness: Google's Tax Policies

Wednesday 24 April 2013, 6:00PM
By Andersen Accountants Limited
396 views


Google is defending its tax policies which have led to it paying tax at an effective rate of 3.2% on profits. Because it’s not illegal that makes it acceptable, according to Google’s boss. We don’t believe that Google is acting illegally either; however, it is taking advantage of lax US tax policies, with regard to unrepatriated profits, and double tax treaties in ways that were never intended by governments when those treaties were drafted. The treaties are supposed to prevent double tax, not to facilitate giant corporations obtaining the benefits of double non tax.

Although Google’s actions are not illegal, because it and other giant multinationals’ tax polices remove huge amounts of revenue from governments worldwide, this means that countries face enormous financial pressures and deficits as a result. That cost has to be borne by salary and wage earners and ordinary small to medium businesses. It’s time for fairness.

Kristina Andersen
Andersen Accountants Limited
Telephone: 09 3695198
Email: Kristina@andersen.co.nz
Website: www.andersen.co.nz