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Print Article Which of Australias Biggest Companies Are Not Paying Tax
Print Article Which of Australias Biggest Companies Are Not Paying Tax
Print Article Which of Australias Biggest Companies Are Not Paying Tax
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WhichofAustralia'sbiggestcompaniesarenotpayingtax
NassimKhademandCraigButt
Published:December17,20155:21PM
MichaelPascoe:ScottMorrisonwedgeshimself
Multinationaloilandgasgiantspayingnopetroleumresourcerenttax
WhichofAustralia'sbiggestcompaniesarenotpayingtax
Toptencompaniespayingtheleasttax
Outof1539ofAustralia'slargestcorporateentities,38percentdidnotpayanytaxin201314.
TaxCommissionerChrisJordanhasreleasedthetaxdetailsofcorporateentitieswith$100millionormoreannual
turnover985ofwhichareforeignowned,and554ofwhichareAustralianforeignentities.
The1539companieshadacombinedturnoverof$1.6trillioninturnover,$169.9billioninprofit,andpaidacombined
$39.9billionintax.
Therewere579localandforeignbasedcompaniesthatpaidnotaxin201314whichhadacombinedturnoverof$405.9
billionandataxableincomeof$4billion.
Thenilresultiseitherbecausetheydidnotpayanytax,hadoffsetsagainstprofitsthatreducedtheirtaxtozero,or,they
madealoss,whichtheTaxOfficereportsasnil.
Certainindustriesinthe201314incomeyearwerestillrecoveringfromtheglobalfinancialcrisiswithsignificantcarried
forwardlosses,baddebtsorrestructuringactivitiesunderway.
Transfieldwith$2.8billionturnover,hadtaxableincomeof$16million,andzerotax.
Chevron,whichrecentlylostagainsttheATOintheFederalCourt,butwillbechallengingthedecision,hadturnoverof$3
billionbutpaidnottax.
Adani'sAbbotPointTerminalinQueenslandwithaturnoverof$268millionalsopaidnotax.
CSLhad$2.1billionturnover,$160millionintaxableincomeandpaidzerotax,howeverthecompanysaidtheturnover
figureincludedoverseasprofitsalreadytaxed,andtaxowingwasoffsetbycreditsforitsR&DworkinAustralia.
NewsAustralia,whichhadaturnoverof$3.9billionbetweenitsAustralianarms,had$97.2millioninnetincomelastyear
andpaid$4.2millionintax.
teinhoffHoldings(ownedthroughtheNetherlandsandwithkeybrandsFreedom(furniture),Snooze(bedding)andBuy
S
LeatherRepublic)hadatotalincomeof$431million,taxableincomeof$150andpaidnotax.
FairfaxMediahad$1.7billioninturnover,$69.8millioninnetincomeandpaid$16.1millionintax.
Somepaidtax,butmuchnotmuchrelativetoincome.Forinstance,Macquariehadturnoverof$8.1billionbutpaidjust
$127.9millionintax.
MacquarierunsaMarchfinancialyear.IntheyeartoMarch2015itdeclaredthatnetprofitrose27percentfrom$1.28
billionto$1.62billion,aftertaxthatrosefrom$827millionto$899million.
RACVandRACQbothpaidnotaxdespitenetincomesof$119millionand$54.6million.
NappymakerUnicharmAustraliapaidjust$3intaxlastyear(enoughtobuyan80packofitsbabywipes)outofa$10
profit.Ithadaturnoverof$130millionoverthesameperiod.
Taxminimisationnottakenlightly
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4/14/2017 PrintArticle:WhichofAustralia'sbiggestcompaniesarenotpayingtax
LaborSenatorSamDastyari,whohaschairedtheSenateinquiryintocorporatetaxavoidance,toldFairfaxMedia:"It's
timetobringthesepracticestoanend.Itdoesn'tpassthesnifftestthatallthesecompanieshavelegitimatereasonsfor
payingnotax."
HesaidtougherantiavoidancemeasurespassedbytheCoalitiongopartofthewaytostoppingcorporatetaxavoidance,
butitwas"nowherenearenough".
AustralianGreensleaderRichardDiNatalesaid:"theymightbeabletoaffordthebesttaxlawyerstohelpthemstayahead
oftheparliamentbuttheywon'tbeabletoescapethecourtofpublicopinion".
"Itwillnowbeuptothesecompaniestojustifytheirtaxarrangements."
TaxCommissionerChrisJordansaid:"taxshouldmattertothesecompanies"."Itisnotsomethingtobetakenlightly."
While"notaxpaiddoesnotnecessarilymeantaxavoidance",hesaid"anycompanieswithunusualfinancialortaxation
numbersarecloselyinvestigatedbytheATO".
"...Wedohavesomesignificantdisputeswithsomeofthem".
"Someoftheseforeignownedcompaniesareoverlyaggressiveinthewaytheystructuretheiroperations."
TaxJusticeNetworkspokesmanMarkZirnsaksaidmanycompanieshadmadenoefforttoexplaintheirtaxaffairstothe
generalpublicandmanyhadnotfiledfinancialreportswithASIC.
"Anycompanythatnowcomplainsitisfacingtoughquestionsaboutitstaxaffairsonlyhasitselftoblame,"hesaid.
Energyandresourceswerethesectorswiththehighestlevelofnonpayment.FossilfuelcompaniessuchasExxonMobil
Australia,ChevronAustralia,PeabodyAustralia,andWhitehavenareamongthosethatpaidnotaxfor201314,
GreenpeaceAustraliaheadofcampaignsDominiqueRowesaid.
"Whatwe'reseeingisaseriesoftactics,suchascompanieswritingofftheirlosses,inordertoavoidpayingtax,"shesaid.
BCAwarnsagainstmisinterpretation
BusinessCouncilofAustraliachiefexecutiveJenniferWestacottcautionedagainstmisleadinginterpretationsof
data."Companiesdonotpaycompanyincometaxonrevenue(totalincome)theypayitonprofitsafterpayingall
expensesincludingwages,capitalreplacement,suppliercosts,fleetcostsandotheroperatingexpenses,"shesaid.
MsWestacottsaidmanysmallandmediumsizedbusinessesdidnotmakeaprofitinagivenyear,"andevenlarge
businessesgothroughcycleswhereprofitsfromlargeinvestmentstaketimetoberealised".
Shesaidthecompanieslistedaccountedfor$40billionofthe$67billionincompanytaxpaidin201314.
AustralianChamberofCommerceandIndustrybossKateCarnellsaid:"Wemustfacethefactthatweakereconomic
conditionsarehurtingthebottomlineformanybusinessesandit'snotsurprisingthatlossmakingcompaniesarenotliable
forprofittaxes."
ATOchallengingaggressivearrangements
TheATOwouldcontinuetochallengethemoreaggressivearrangements."Weareresoluteaboutensuringcompaniesare
notunreasonablyplayingontheedge,"MrJordansaid."Iftheydo,theycanexpecttobechallenged."
AsFairfaxMediareported,overhalfofthecompaniesonthelisthavebeensubjecttoATOrevieworauditoverthepast
threeyears.
HesaidthefederalgovernmentwasworkingwiththeBoardofTaxationtogofurtheranddevelopavoluntarycodesothat
companiescantelltheirowntaxstory.
"Largecorporatesnowhavetoconsidertheimpactoftheirtaxinformationasafactorinmanagingtheirreputationwith
themarkets,theirshareholders,theirconsumersandintheAustraliancommunity,"hesaid.
TheATO'slististheresultoftaxdisclosurelawspassedundertheformerLaborgovernmentthatrequirethe
Commissionertopublishthetaxdetailsofpubliccompanieswith$100millionormoreannualturnover.
Thetaxinformationofabout300privatecompanieswillbereportedinMarchnextyear.
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