Apple, Google, and Microsoft to Testify on Tax Transparency in Australia

Strategic Insights -

Apple Australia managing director Tony King is expected to appear before the economics references committee in Sydney, presenting detailed statistics on the company's economic contribution to the country. The committee will also hear from Google Australia managing director Maile Carnegie and Microsoft worldwide tax corporate vice-president Bill Sample. The hearings will cover topics such as tax transparency, the impact of royalties on mining companies, and the role of technology in the Australian economy.

Key Takeaways:

  • Apple is expected to disclose residual benefits from the success of its App Store, with developers keeping 70% of every download fee while Apple takes a 30% cut.
  • Google Australia managing director Maile Carnegie will address the need for a global, co-ordinated approach towards a simpler, more transparent tax system.
  • Microsoft worldwide tax corporate vice-president Bill Sample will build on its earlier submission, highlighting a 10,000-strong partner network locally that invested $14.5bn into their Microsoft-related businesses in 2013.
  • Rio Tinto's Australian managing director Phil Edmands will outline the level of taxation the mining giant pays in Australia, including $6.2bn in taxes and mining royalties delivered to governments in 2014.
  • Glencore will argue that royalties paid on production are not a form of tax, emphasizing that they are paid regardless of whether the operation is profitable or not.
  • The company has also stated that some of its Australian mines are operating at a loss but are still paying royalties.
  • Google reported revenues of $358 million in 2013 and paid $7.1m in tax.
  • Microsoft's earlier submission highlighted the importance of technology in the Australian economy, with a focus on the company's investments and contributions to the local market.

Statistics:

  • $358 million: Google's revenues in 2013
  • $7.1m: Tax paid by Google in 2013
  • 10,000: Number of local partners in Microsoft's network
  • $14.5bn: Investment by Microsoft's local partner network in 2013
  • $6.2bn: Taxes and mining royalties delivered by Rio Tinto to governments in Australia in 2014

Sources:

  • Apple Australia's submission to the Senate tax inquiry
  • Google Australia's submission to the Senate tax inquiry
  • Microsoft's submission to the Senate tax inquiry
  • Rio Tinto's fifth taxes paid report, released last month
  • Glencore's submission to the Senate tax inquiry