Australian Tax Office investigates Microsoft, Apple and Google

The Australian Tax Office (ATO) has revealed it was investigating Microsoft, Apple and Google regarding corporate tax in Sydney on Wednesday.

Australian tax commissioner Chris Jordan questioned the testimonies given by executives from Microsoft, Apple, and Google to the Senate committee investigating corporate tax avoidance last week.

Jordan said the ATO was auditing these multinationals, which have all said they operated in Singapore, and therefore transferred their profits there where the tax rate is lower.

"We do not accept all statements at face value," Jordan said.

Jordan said Microsoft had told the inquiry its Australian sourced income was accounted for in Singapore.

"In one sense it's right, that the money is in the (Singapore) account," he said. "For a moment."

Microsoft had said it reported 2 billion Australian dollars (1. 55 billion U.S. dollars) in Australia-sourced income in Singapore, while only 100 million Australian dollars (77 million U.S. dollars) in services was reported in Australia.

The ATO "is trying to determine whether this is the appropriate division of profits", Jordan said.

Jordan said the ATO was investigating Apple, while media reports claim it had paid only 1.9 percent tax in Ireland on Australian-sourced income.

The ATO was also "vigorously contesting" Rio Tinto and BHP Billiton's tax payments in ongoing audits covering the last five years, when the marketing hubs reported the bulk of their profits. Endi