A South Korean appeals court has upheld a lower court’s decision, siding with **Google Korea** in a significant corporate tax cancellation lawsuit valued at over 150 billion won (approximately $103 million USD). This ruling marks a notable legal victory for the global tech giant in the country.
The **Seoul High Court** delivered its judgment on Thursday, affirming the company’s request for the cancellation of **corporate taxes** that were originally levied in 2020. The dispute centered on allegations by **South Korean tax authorities** that Google Korea had improperly transferred a portion of its income to its regional entity, Google Asia Pacific, based in Singapore.
Reports indicate that at the time, tax authorities had imposed a combined total of approximately 154 billion won in corporate and local income taxes on Google Korea. This was due to concerns regarding the strategic transfer of income, which they argued should have been subject to taxation within Korea.
**Google Korea**, however, contested these charges in court. The company asserted that the funds in question legitimately constituted part of **Google Asia Pacific’s business income**, and therefore, were not liable for corporate taxation in South Korea. The initial lower court had previously rejected the arguments put forth by the tax authorities, a decision now affirmed by the appellate court.
While the appellate court did dismiss a separate request for the cancellation of local income taxes, it clarified that this decision carried no practical impact. This is because local income taxes are intrinsically linked to, and effectively dependent on, the imposition of corporate taxes, which were ultimately canceled.
This case represents the latest in a series of high-profile **tax cancellation disputes** involving major international technology companies operating within South Korea, highlighting ongoing complexities in cross-border corporate taxation.
