Google NZ pays $165k tax in boom year for online ad spend

  • Digital
  • May 9, 2013
  • Sim Ahmed
Google NZ pays $165k tax in boom year for online ad spend

Google New Zealand's latest financial statement to the government shows the search giant paid $165,000 to the tax man in 2012.

According to Google NZ documents on the Companies Office website, Google clocked a $360,000 loss last year (up from $52,000 the previous year) but this doesn't take into account revenue its global parent company makes from New Zealand customers with products like AdWords. 

Google's lucrative global search marketing revenue is piped through Google Ireland, which minimises the company's tax exposure. This has put Google in the crosshairs of overseas tax authorities.

Chairman Eric Schmidt defends Google's tax policies, saying in the Guardian article it abides by the laws of the countries it operates in. Google paid £6 million in taxes in the UK from £2.5 billion in revenue in 2011.

According to the Interactive Advertising Bureau (IAB) and PwC, 2012 was an incredibly strong year for online advertising in New Zealand – with revenue up nine percent to $363 million. The lion's share of this figure is from search and directory spending, where Google is the dominant player.

Google NZ's books does show $6.8 million in revenue (up 53 percent from 2011), which it attributes to its servicing and consulting work with major customers in the country. All of Google's staff in New Zealand (apart from a single engineer in Wellington) work in sales roles.

A year ago Google New Zealand consisted of three people who would fly back and forth from Sydney to manage the sales work in New Zealand, now there's a dozen Googlers working from the PwC Tower in Auckland. Google paid $4.2 million in employee benefit expenses in 2012.

The advertising company spent $253,000 promoting its own services and products, and $768,000 in travel expenses.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

IABNZ Q3 Revenue Report: interactive revenue grows to $266 million

  • Advertising
  • November 16, 2018
  • StopPress Team
IABNZ Q3 Revenue Report: interactive revenue grows to $266 million

IABNZ’s Internet Advertising Report for Q3 2018 has been released, with total revenue reaching $266 million for the quarter representing 13 percent growth year-on-year.

Read more
Next page
Results for

StopPress provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2018 ICG Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.


Contact Vernene Medcalf at +64 21 628 200 to advertise in StopPress.

View Media Kit