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​Google Australia posts AU$125m profit as it continues to fight ATO on tax matters

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Google Australia has made its financial results to the Australian Securities and Investments Commission (ASIC) available, reporting AU$125 million in after-tax profit for 2017, up from the AU$104 million posted a year prior.

Profit before tax was AU$149 million, on revenue of AU$1.02 billion, which comprised of AU$604 million from advertising, AU$266 million from research and development (R&D) services, and AU$136 million from hardware.

Reported under Australian accounting standard AASB 15, revenue numbered AU$1.02 billion; however if the company reported under AASB 118, revenue would be revealed as pushing AU$3.46 billion.

Google Australia adopted the AASB 15 standard on January 1, 2017.

Cost of sales and services for the 12-month period was AU$459 million, down from the AU$700 million reported in 2016. Receipts from customers numbered AU$3.5 billion, up from AU$642 million.

Operating expenses were flagged by the search giant as AU$416.5 million.

After last year confirming the Australian Taxation Office (ATO) was chasing it for a debt relating to unpaid tax, Google lodged an objection against the amended income tax assessments[1] it was issued at 2016 year end.

"Such contingencies relate to reviews for open tax years as well as certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business," the company said last May.

"The company will continue to uphold its positions against any and all such claims."

In its ASIC filing on Tuesday, the company said it had lodged objections to the amended assessments and, consistent with ATO practice, made a payment to the Commissioner of Taxation to stay recovery action.

"The tax matters remain ongoing and the company and the ATO are actively working to resolve all issues for open tax years," Google Australia wrote. "As the

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