High banking fees have been solved for me for quite a while ago as Google is paying us via direct deposit.
Sure the conversion happens at the end of the month. No big deal:
- if the amount is large enough to matter, there's hedging one can do.
- if you prefer you can go back to antique paper checks, get a dollar account and convert it whenever you think the exchange rate is best.
Since they do send the money in the direct deposit from accounts owned by their EU daughters, it seems logical to stop the need to have a "contract" with the Google legal entity in the USA, it would be far easier to deal with the local legal entity (laws become far easier, taxes etc. all becomes a common issue all businesses are used to deal with on a daily basis).
So why don't some like this compared to the "US income": well not all Europeans like to pay taxes (locally) all that much and Google leaves very little paperwork trail towards the local government (all you claim is "no US assets" and you're good to go), as long as the amounts are small your bank won't report you for fraud either ... and unlike the IRS who can _seriously_ hurt you, local tax fraud hardly is punished if you do get caught (you just pay what you did owe and a small fine).
This becomes far more tricky to do if the one paying you is inside the EU, or inside your country as then they report to the government who they paid and the taxman gets far more interested in it all and might catch quite a few who have unreported income (not that bad) or don't have the right status (e.g. not being self-employed (quite bad where I live, this could hurt as the amount of things out of order is large and each one will land you a bunch of fines on top of what you owed already and never paid).
I'm sure with Google using European accounts to pay the money from their local legal entities already have a bunch of tax questions to answer, so I can understand they get pressure to stop "hiding" the contracts in the US.
I for one would rather have a contract with Google (either local or in Dublin, doesn't matter that much).
If they report it in dollars and convert it at the end of the month or if they report it in EUR and stick to that amount: I don't care much at all. One month one way will be better, the next the other way will be better (and I realize lately the USD isn't doing well, but things eventually will change).
Will it mean that the hobby site owner will have to become self employed for the after hours activities: very likely IMHO. And I guess few of those running hobby websites are lookign all that much forward to that prospect.