THE Australia's Asst Treasurer David Bradbury has announced that the tax laws were being revised to ensure that companies pay tax on profits made in the country, citing the case of Google Australia.

While the day to day dealings of Australian firms advertising on Google might be with Google Australia, under the fine print of contracts Australian firms sign with Google, they are actually buying their advertising from an Irish subsidiary of Google and that the source of this income and therefore the taxing rights under tax treaty would be with Ireland rather than Australia. Australia's company tax rate is 30 per cent, compared to Ireland's rate of 12.5 per cent. Google Australia would not comment directly on Bradbury's comments, but said it complied with all local tax laws.