The Australian Tax Office has won a major victory against tech giant Google after a longstanding dispute.

Key points: Google joins Apple, Microsoft and Facebook in paying extra tax to the ATO

Google joins Apple, Microsoft and Facebook in paying extra tax to the ATO The company's parent, Alphabet, fell just 0.2 per cent on Wall Street in response to the extra $481.5m tax bill

The company's parent, Alphabet, fell just 0.2 per cent on Wall Street in response to the extra $481.5m tax bill US stocks hit fresh highs during the session but fell late to close just below record highs

Google will pay the ATO an extra $481.5 million in taxes.

The firm has joined other tech giants, Microsoft, Apple and Facebook, which have also settled tax disputes with the ATO, netting an extra $1.25 billion from the industry.

The settlement means that Australian sourced sales by digital giants will be taxed here.

Treasurer Josh Frydenberg said the settlement between the ATO and Google was strong evidence that the crackdown on multinational companies was bearing fruit.

"The Government's successful implementation of its Multinational Anti-Tax Avoidance Laws (MAAL) has seen many large businesses restructure their operations to be compliant with the law," he said.

But there was little impact on the shares of Alphabet, Google's parent company.

Alphabet shares fell just 0.2 per cent to $US1,351.91.

US stocks back away from fresh records

US stocks edged up to new record highs during the session as optimism continues about the global economy, but fell away late to close slightly lower.

Optimism was capped by the probable impeachment of US President Donald Trump amid a pending vote in the US House of Representatives.

Investors are also still waiting for the phase one trade deal between the US and China to be signed.

Fed Ex shares fell by 10 per cent after the parcel delivery firm cut its profit forecast for 2020 on a rise in expenses.

Fiat Chrysler announced a $US50 billion merger with PSA, the company that manufactures Peugeot cars.

The S&P 500 reached its fifth consecutive high, before closing 1 point lower at 3,191.

The Dow Jones index fell 0.1 per cent, but the Nasdaq rose 4 points to a fresh closing record.

The pound fell again on the prospect of a hard Brexit — one Australian dollar is now worth 52.38 British pence.

But the FTSE 100 index rose 0.2 per cent to 7,541.

Oil prices rose after US Government data showed a fall in inventories. Brent crude increased to $US66.27 a barrel.

Spot gold fell below $US1,475 an ounce on a stronger greenback.

The ASX SPI 200 index was down 0.2 per cent at 6,846.

Later this morning the latest unemployment figures will be out.

Economists are expecting the unemployment rate to stay steady at 5.3 per cent in November.

The Australian dollar has come off its overnight lows to around 68.5 US cents.