Google’s Australian operation may have had its $7.1m tax bill reduced to just $466,802 in the 2013 financial year.
Google Australia had its taxes reduced as a result of of a range of tax deductions, according to Fairfax Media.
But the company also reported it had made $46.5m in local pre-tax profits, according to filings with the Australian Securities and Investments Commission.
On Monday Google denied the claim, and said in a statement: "We paid $7.1m in corporate taxes and $15m in payroll and other taxes in Australia."
Tech giants in Australia have come under scrutiny for the relatively small amount of tax they pay compared to their estimated profits, leading to calls for an overhaul of tax laws.
Eight multinational companies are being reviewed in Australia by the tax office because of the low taxes they pay.
It was also reported earlier in the year that Apple’s Australian arm had shifted $8.9bn in untaxed profits to a tax haven structure in Ireland.