Tax Blog

Google and Tax Planning

According to ETF Daily News, Google may be on the hook for a $1 billion dollar tax bill. Google’s parent company, Alphabet, Inc., has been searched by the government of Indonesia. Indonesia is now looking at five years of records amid reports that Google has only been paying 0.1% in taxes. In one case, Google Singapore went so far as to refuse an audit all together. This heightened the situation into a criminal investigation.

Google claimed it had been “tax planning”. Tax planning is not illegal, it is completely legal when done properly. A well thought out strategy should be explainable to taxing authorities. Dodging an audit altogether leaves question as to whether their tax planning was questionable to some extent.

The situation is ongoing and with fines and penalties, one expert claims Google may face over a $1 billion dollar tax bill.

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