Google's India unit has sent over $2 billion from the revenue earned in the country over the last five financial years to its subsidiaries in Singapore and Ireland, The Economic Times reported.
The amount was categorised as an expense towards “purchase of advertising space” in the search engine's financial statement, the report said citing an analysis of the company’s financial statements.
The amount could increase the company’s tax liability in the country at a time when the US-based search giant's dispute with the Indian authorities, over the tax outlay on earlier transfers, continues to be heard in court, said the report.
Google India has sent a total of Rs 16,119.6 crore ($2.18 billion) towards “purchase of advertising space”, which is the biggest cost item in its P&L statement under “Miscellaneous expenses” for the period 2013-14 to 2017-18, the report said citing regulatory filings made with the Registrar of Companies.
The money transfers amount to around 60 percent of the company’s total revenue in India over the five-year period, said the report.
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