Sony Australia in $53 million dispute with Australian Taxation Office - Report

[update] Sony Australia will appeal five years' worth of tax return adjustments; no impact on local PlayStation business.

by

[Update]

A Sony Computer Entertainment Australia spokesperson has confirmed to GameSpot that the local PlayStation business has not been affected by the dispute.

"The Australian Tax Office (ATO) issued assessments against Sony Australia has no impact on the Sony Computer Entertainment Australia Pty Ltd business. Sony Computer Entertainment Australia is a totally separate legal entity," they said.

The original story is available below

Sony Australia is currently in dispute with the Australian Taxation Office (ATO) for around A$53 million of back taxes and penalties, according to a report by the Australian Financial Review.

Exact specifics of the disagreement are unclear, but are believed to be tied to the ATO's increasing scrutiny of multinational organisations and the distribution of local earnings outside of Australian borders.

Financial notes released by Sony indicate that the business appealed a series of amended assessments issued by the tax body in May this year, linked to five years of returns, from 2005 to 2008, as well as 2010. The total amount of additional tax is reportedly A$32.7 million, with interest of A$17.7 million and further penalties totalling A$3.3 million.

"[Sony Australia] is satisfied that its calculation of taxable income is consistent with all relevant legislations, and has commenced appeal processes to dispute the notice of amended assessments," the company responded, regarding its financial standing.

A Sony Australia spokesman confirmed that the appeals process is ongoing, and said that the company would challenge further taxes claimed by the ATO, but declined to elaborate on the situation.

"As discussions are ongoing, we're unable to comment further at this point," he told the Australian Financial Review.

GameSpot contacted the Australian Taxation Office seeking further information, but a spokesperson declined to comment, citing privacy laws.

While the claims are reportedly being levelled at parent company Sony Australia, it's unclear what, if any, impact the proceedings will have against Sony Computer Entertainment Australia and its PlayStation brand. A representative could not be reached for comment at the time of publication.

GameSpot will update the story as more information comes to hand.

Discussion

122 comments
so_hai
so_hai

Paging Paul Hogan...

SIDEFX1
SIDEFX1

Tax departments let this slide for 5 years.. Hope Sony wins.. 

hadlee73
hadlee73

Australian departments are getting revenge on Sony not making any games based on their Kalgoorlie Cops television series. :P

Jim DiTullio
Jim DiTullio

companies are always in court for one thing or another.

Diogo Gonçalves
Diogo Gonçalves

do you remember that one console that revolutionized the gaming industry oh that's right playstation one

Chris Dye
Chris Dye

why do microsoft and sony still even sell stuff in australia? they have so many bans laws restrictions and now this. personally not worth it to me

David Chang
David Chang

I think Sony will win the console war, then while Sony revels in their victory, Samsung brings the hammer down.

Jeff Snyder
Jeff Snyder

How many more years until Sony files for bankruptcy?

frozenux
frozenux

53 millions dispute Sony....53 mhz Gpu bump on the cable box....coincidence or do i need to put down my aluminum hat for a bit.

so_hai
so_hai

The ATO had a hard-on for Paul Hogan recently too. They're always looking to grab your boob and squeeze it until it's blue...

jonny_dutch
jonny_dutch

Not an economics kid, are Sony trying to get tax back because they've paid too much, or trying to avoid paying more because they've been dodging??

Ben Myers
Ben Myers

And people say Microsoft love their money.

ArabrockermanX
ArabrockermanX

Can't be too big of a hit. 


Read the update and no surprise...

Tadgerot
Tadgerot

Australia are just pissed off because they lost the ashes to England "again".

Now they are going after Sony to see if they can bowl em out.

Howzat.

Andrew Anderson
Andrew Anderson

Good one, dude. To a company that is worth roughly $40 billion, $53 million is nothing. I'd imagine they netted upwards of $100 million from TLOU, so far.

Oo Corci Oo
Oo Corci Oo

Gavin, I bet you play cod. Don't deny it.

Oo Corci Oo
Oo Corci Oo

You obviously don't know that much about anything.

CROAT_56
CROAT_56

Slow night in Gamespot land 

revil2
revil2

Just give me the money.  I'll make sure the money is safe.  Don't worry.  ; )

lev2013
lev2013

Sony only made $35M in there latest report, they can't afford to take anymore hits especially cause they're making ps4s, analyst are already saying the ps4s aren't guaranteed for everyone who pre ordered it & that the X1 has 3times more units made thn ps4

GhostHawk196
GhostHawk196

I wonder how many people from countries other than Australia think our government is formed of monkeys and chimpanzees

George Orozco
George Orozco

Halo , Battlefield , League of Legends , Age of Empires/Mythology , Star Wars ,Resident Evil almost everything ,cod? hell no

AlfredGurns
AlfredGurns

@Chris Dye They don't ban any Sony stuff ass far as I know. What bans are you talking about?

DWalker131
DWalker131

@Chris Dye i'm surprised they sell bottled water here in australia, without fear of someone drowning lol

damodar_thade
damodar_thade

@jonny_dutch Not into economics either but the article is about amended assessments meaning the ATO billed them each year then has gone back and apparently found that 53m more is owed.

maghdie
maghdie

@lev2013 You telling me analysts said a software company(microsoft) is making 3 times more units than a hardware company (sony)? is this supposed to be worldwide? or just in washington?

CrouchingWeasel
CrouchingWeasel

@GhostHawk196  

If they think that already about our government then I shudder to contemplate what will they think if Tony Abbott becomes PM.

Tadgerot
Tadgerot

Lol omg, what a idiot.

Red wineky?

krystyla
krystyla

@maghdie if everyone stopped everytime someone calls them an idiot we would still be in the stone ages

krystyla
krystyla

@Ariost Game of Thrones is overrated and the Lannisters are cute after watching revenge