Google agrees to pay the Australian Government $481.5 million to settle a tax dispute with the ATO, but US investors hardly notice the impost.
The Australian Tax Office has won a major victory against tech giant Google after a longstanding dispute.The company's parent, Alphabet, fell just 0.2 per cent on Wall Street in response to the extra $481.5m tax billGoogle will pay the ATO an extra $481.5 million in taxes.
The firm has joined other tech giants, Microsoft, Apple and Facebook, which have also settled tax disputes with the ATO, netting an extra $1.25 billion from the industry.Australia could be one of the world's earliest movers in introducing an interim tax on digital companies. Treasurer Josh Frydenberg said the settlement between the ATO and Google was strong evidence that the crackdown on multinational companies was bearing fruit.
"The Government's successful implementation of its Multinational Anti-Tax Avoidance Laws has seen many large businesses restructure their operations to be compliant with the law," he said.Alphabet shares fell just 0.2 per cent to $US1,351.91.US stocks edged up to new record highs during the session as optimism continues about the global economy, but fell away late to close slightly lower.
Fed Ex shares fell by 10 per cent after the parcel delivery firm cut its profit forecast for 2020 on a rise in expenses.The S&P 500 reached its fifth consecutive high, before closing 1 point lower at 3,191.The pound fell again on the prospect of a hard Brexit — one Australian dollar is now worth 52.38 British pence.Oil prices rose after US Government data showed a fall in inventories. Brent crude increased to $US66.27 a barrel.The ASX SPI 200 index was down 0.2 per cent at 6,846.
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