A crackdown on multinational tax avoidance has forced Facebook to pay $31 million in local taxes back to the Australian Taxation Office (ATO).
The fee covers Facebook’s presence in Australia from 2009 to 2015, however, may not be representative of the platform’s actual profits during those six years.
In 2017, Facebook reported a local tax bill of $11.2 million on a profit of $32.9 million, however in 2016, posted a pre-tax earning of only $6.3 million and paid $3.3 million in tax.
The drastic increase in – or more likely underreporting of – local revenue may be due to the platform having to be more transparent about revenue thanks to the ongoing probe into Facebook’s Australian division.
Google has also recently released its local accounts and profit, with the tech giant reporting a profit of $125.1 million in 2016 from its Australian arm.
Last year Google Australia earned roughly $3 billion in advertising while Facebook earned $479 million in ad spend revenue.
Both companies have been forced to simplify their tax structures as a way of becoming more transparent in the Australian market.
Google and Facebook may soon face tougher regulations depending on the ACCC’s submission into its ongoing digital platforms inquiry.
The ACCC called for submissions from Australian media outlets and publishers to determine if the likes of Facebook’s and Google’s algorithms had breached consumer protection laws in February.
The callout was part of its public inquiry into the impact of digital platforms on competition in media and advertising services, namely in relation to the supply of news and journalistic content.
The ACCC is also looking at the impact the likes of Google and Facebook are having on traditional Australian publishers and try and determine whether they can remain viable into the future.
In its report, the ACCC said it was concerned by “advanced algorithms to process user data” that deliver content that matches preferences is described as a possible “consumer protection concern”.
Shop! ANZ is calling on shopper and retail marketing professionals from all retail related disciplines to participate in the first ANZ Shopper and Retail Marketing Industry Survey in four years. This important research provides a guide of where the retail marketing industry in Australia and New Zealand has come from and what is anticipated to […]
In this guest post, Ania Kubiak (main photo), A/NZ country manager at Lucid, offers her tips on how to align your brand with customers’ fast-moving expectations… In today’s digital world, the speed at which consumers’ perspectives and opinions on political and social environments is changing faster than ever before. Consumers are inundated with new information […]
Cartology, the retail media business of Woolworths Group, has further expanded its team with Martin Wood (pictured below) been promoted to head of strategic partnerships and Matt Gower (main photo) has joined the business as senior manager of research and insights. Wood will lead a new team dedicated to servicing the retail media business’s largest […]
CondÉ Nast, the publisher of publications such as VOGUE, Vanity fair, Pitchfork and The New Yorker has agreed to raise the minimum wage for employees after a campaign by the New Yorker union. The union had previously organised a protest, which saw New Yorker staff demonstrating outside VOGUE editor-in-chief Anna Wintour’s home. Placards at the protest had […]
GoDaddy has announced it has been named as the official website builder partner of the Australian Olympic team for the Tokyo 2020 Games. GoDaddy has a history of supporting entrepreneurs and small business owners in Australia. Many Australian Olympic athletes are small business owners themselves, running businesses and side hustle to help support the pursuit […]
MDC Partners (NASDAQ: MDCA), the company that owns agencies including 72andSunny, Anomaly and Media Kitchen, has expanded its global footprint in a partnership with This Is Flow. The Australian based indie will become MDC’s affiliate media planning and buying agency across Australia and New Zealand and will help manage global clients and participate on global pitches etc. however This is Flow will still remain 100% independent.
DoubleVerify has announced the expansion of a partnership with The Trade Desk to include activation of DV Custom Contextual, which will enable programmatic advertisers using the platform to target relevant audiences in a privacy-safe manner that does not utilize cookies or personally identifiable information. The Trade Desk now supports a comprehensive suite of DV’s pre-bid […]
Swinburne University of Technology has launched a series of Bootcamp Graduate Certificate courses, developed in partnership with FourthRev. The courses, an Australian-first, will upskill career changers and provide students the capabilities required to thrive in the digital economy. They are available on-campus and through its online arm, Swinburne Online. Alongside completing projects which will emulate […]
PayPal has partnered with Welcome to Country, Australia’s first Indigenous-led not-for-profit marketplace, which showcases businesses that support Aboriginal and Torres Strait Islander communities. Welcome to Country launched in 2019, providing an online platform for Indigenous experience providers across tours, day treks, scenic flights, bush food, festivals, art and cultural experiences. When the pandemic hit, the […]