▲ This file photo, taken Feb. 9, 2024, shows a Google logo at a pop-up store in Seoul. (Yonhap)

appeals court-Google tax

Appeals court sides with Google in corporate tax cancellation case

SEOUL, May 7 (Yonhap) -- An appeals court on Thursday upheld a lower court ruling siding with Google Korea in a corporate tax cancellation case worth over 150 billion won (US$103 million).

The Seoul High Court ruled in favor of the company requesting cancellation of corporate taxes levied in 2020.

Tax authorities had reportedly imposed corporate and local income taxes totaling around 154 billion won on Google Korea at the time, taking issue with its transfer of some of its income to Google Asia Pacific based in Singapore.

Google Korea took the case to court, arguing that the funds in question were part of Google Asia Pacific's business income and therefore not subject to taxation in South Korea. The lower court had rejected the tax authorities' argument.

The appellate court, however, dismissed a request for the cancellation of local income taxes, ruling that there was no practical benefit as local income taxes are linked to corporate taxes.

It marked the latest tax cancellation case involving a major global tech company in the country.

Last week, the Seoul Administrative Court ruled partly in favor of Netflix Services Korea Ltd., ordering authorities to cancel 68.7 billion won in taxes.

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