Google will need to run the gauntlet with the Australian Taxation Office to establish how tax rules apply to a potential $20 billion investment in a local artificial intelligence and data centre hub, after Treasurer Jim Chalmers played down the prospect of a change in the law to accommodate the technology giant.

The Australian Financial Review revealed last month that Google had told the federal government it was withholding a multibillion-dollar investment because of the risk of exposing its broader operations to higher taxes.

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