"Net profits: the tax move that makes Google rich"

News story on how Google is distributing the profits it makes from Adense

[leadegroot]

Well, those of us waiting for Google to start showing stats in our local currency can probably stop holding our breath - its going to be a while, I'd say.

News story: [smh.com.au...]

Under Australian tax laws, Google - and many others - are able to siphon off hundreds of millions of dollars in revenue from its Australian business to an overseas subsidiary - in Google's case, Ireland.

So, the Europeans got their displays in Euros because Google is operating in a tax effective manner in Ireland, but if they do the same in Country X, it will increase their tax bill.
Darn, and I was so looking forward to it :(

[IanCP]

Hate to disillusion you mate but that practice has been going on ever since Income Tax was invented as a "temporary measure" during WW1.

Tax Avoidance is an industry in itself in Australia although nowhere near as bad as it was pre 1980's. That was when I was paying a top marginal rate of 60.1%. When Keating dramatically dropped that rate a whole lot of tax avoidance measures quickly became not only "unattractive" but uneconomical.

[swa66]

Every multinational chooses where it makes its profit by adjusting transfer prices and/or by choosing to bill or give services between the different legal entities for free or not.
Nothing new, it's just optimizing taxes and paying them where the taxes are lowest.

Be glad they pay at all: they could also build an offshore island in international waters and run it from there.

So, the Europeans got their displays in Euros

Actually it's just a very small set of european countries that got it, not even all of the eurozone.

[gamiziuk]

Be glad they pay at all: they could also build an offshore island in international waters and run it from there.

Google Sealand?

[swa66]

Google Sealand?

More like Google Offshore Drilling Rig recycled for Internet Services Tax Evasion Scheme (ODRISTES)

[LifeinAsia]

Why bother with an island? Google-SAT!

[graeme_p]

Ian, actually income tax was originally introduced as a temporary measure during the Napoleonic wars.

There is no reason why Google Ireland cannot deal with Adsense pulishers (including showing stats) in almost any currency (apart from those subject to strict exchange controls), so this is not generally relevant to what stats are displayed in or what currency payments are made in.

MS does this too - half their profits outside the US are taxable in Ireland.

[IanCP]

Ian, actually income tax was originally introduced as a temporary measure during the Napoleonic wars

Not in OZ where both I and the earlier poster hail from.

It was "temporary" here in WW1 and like all things stayed.