Seoul High Court Rules on May 7 Partially for Google Korea Over W15.40 Billion Tax Levy
(Photo courtesy of Reuters)
Courts are repeatedly putting the brakes on the tax authorities’ imposition of corporate tax on global Big Tech companies. With Google now prevailing after Netflix and Meta, the ruling is expected to increase calls for an overall overhaul of the taxation framework for overseas platform companies.
The Administrative Division 9-1 of the Seoul High Court ruled on May 7 partially in favor of the plaintiff in a lawsuit filed by Google Korea against the head of the Yeoksam District Tax Office and others seeking the cancellation of the collection disposition for corporate tax and other levies.
The court dismissed the claim seeking cancellation of the local tax collection disposition brought against the Gangnam District Office. It found that, because local tax is linked to corporate tax, there was no practical benefit in filing a separate lawsuit over it.
Earlier, in connection with Google Korea’s remittance of part of the revenue it earned from domestic advertising sales and other activities to Google Asia Pacific, its Singapore-based affiliate, the tax authorities imposed corporate tax and local income tax of about W15.40 billion ($11.09 million) in 2020.
Google Asia Pacific is a Singapore corporation that oversees business across the Asia-Pacific region.
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