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Mal governs while Shorty stagnates (Read 1258 times)
juliar
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Mal governs while Shorty stagnates
Mar 28th, 2017 at 9:58pm
 
Mal has moved on the big ones at last. A BIG vote winner.




Australia now officially has a 'Google tax': Diverted Profits Tax law passed Parliament
Nassim Khadem MARCH 28 2017 - 3:52PM

The Turnbull government's "Google tax" has been passed into law, arming the Australian Taxation Office with some of the world's strongest powers to fight multinationals as it moves to recoup $2 billion in revenue from some of the nation's biggest companies including Apple, BHP Billiton, Chevron and Crown.

But as more countries hunt for a greater share of revenue from multinationals, concerns remain that disagreements between global agencies about which nation is entitled to tax profits could spark revenue wars.

VIDEO: Multinational tax net tightens


The global effort to extract a fair share of tax from multinationals is stepping up, say Tax Commissioner Chris Jordan. Courtesy ABC News24
Nevertheless, in a local context the Diverted Profits Tax (DPT), informally dubbed Australia's "Google tax", has already had a big impact on the behaviour of multinationals.

A number of companies including tech giant Google restructured their tax affairs in anticipation of the laws passing and others have been negotiating with Tax Commissioner Chris Jordan.

...
The so-called "Google tax" is expected to raise $100 million in revenue per year from 2018. Photo: Andrew Quilty

The federal government said the DPT, to commence on July 1 2017, would raise about $100 million in revenue a year from 2018-19.

Australia has a range of other laws aimed at multinationals and the ATO already has audits of big companies under way, which could see up to $2 billion in revenue flowing in, depending on whether or not those companies fight their tax bills.

[url]Big profits targeted[/url]

The DPT laws are aimed at multinationals with global revenue of more than $1 billion and Australian revenue of greater than $25 million. They will be hit with a 40 per cent tax on all profits - that is 10 per cent higher than the 30 per cent company tax rate.

It aims to ensure that the tax paid by global entities properly reflects the economic substance of their activities in Australia and prevents the diversion of profits offshore through contrived arrangements.

...
Treasurer Scott Morrison told Parliament the laws will "encourage greater co-operation between unco-operative multinationals and the ATO".

The tax does not apply to managed investment trusts or similar foreign entities, sovereign wealth funds and foreign pension funds.

It will, however, encourage significant global entities to provide greater information to the ATO to allow for the timely resolution of tax disputes.

...
Tax Commissioner Chris Jordan has audits of seven companies under way which could result in $2 billion in revenue. Photo: Christopher Pearce

Treasurer Scott Morrison announced the legislation in the 2016-17 budget in response to public outcry over companies shifting billions of dollars in profits each year to lower-tax nations.

Mr Morrison told Parliament the laws will "encourage greater cooperation between unco-operative multinationals and the ATO".

Timelier resolution?

"As a result this will greatly reduce the length of disputes between the ATO and multinationals, and lead to timelier dispute resolution," he said.

Australia followed the lead of Britain, which has a similar laws aimed at multinationals which resulted in Google agreeing to a deal with that country's tax authorities to pay £130 million ($214 million) in back taxes.

"It provides a powerful new tool for the Australian Taxation Office to tackle contrived arrangements and unco-operative taxpayers, and will reinforce Australia's position as having some of the toughest laws in the world to combat multinational tax avoidance," Mr Morrison said.

But shadow assistant treasurer Andrew Leigh said the government was "waging a phoney war on multinationals".

"The fact is that the government estimates their Diverted Profits Tax will raise just one-eighth of the revenue that Labor would raise through closing debt-deduction loopholes," he said.

"Since coming to office, the Turnbull government has cut over 3000 staff from the tax office. With fewer staff, it's harder for the tax office to enforce their laws."

The staff cuts have happened in the midst of several laws being passed. The Multinational Anti-Avoidance Law (MAAL), introduced in January this year, which also targets multinational profit shifting by boosting the ATO's anti-avoidance powers.

The ATO also has at its disposal tough transfer pricing rules.

The government in last year's budget also announced a 1300-member ATO tax avoidance taskforce that would be dedicated to stopping rorting by multinationals, private companies and wealthy individuals. That measure is expected to raise $3.7 billion up to 2020.

More overleaf
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juliar
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Re: Mal governs while Shorty stagnates
Reply #1 - Mar 28th, 2017 at 9:58pm
 
Continues...


Audits underway

In a speech at The Tax Institute's conference in Adelaide earlier this month, Mr Jordan said the federal government's tax avoidance taskforce was aimed at catching companies "who are not doing the right thing".

There were already 71 audits under way in the large business area covering 59 multinational corporations, Mr Jordan said.

At least seven major multinational audits were expected to come to a head before June 30, Mr Jordan said, four in e-commerce and three in the energy and resource industries. The ATO expects liabilities to total more than $2 billion from these seven companies.

Oxfam Australia spokeswoman Joy Kyriacou welcomed the passing of the DPT laws, but said more needed to be done to stop about $6 billion of offshoring of profits by Australian-based multinationals.

She said the government needs to ensure country-by-country reporting of tax affairs for all big businesses happens and is made public.

"Australian Tax Office data shows more than one in three big companies are paying no tax," she said.

"Big companies operating from Australia should be required to be transparent and publicly report on their profits, taxes and assets for every country in which they operate, so it's harder for them to shift profits and dodge paying their fair share.

http://www.smh.com.au/business/the-economy/australia-now-officially-has-a-google...


9 comments

SDRPerth, Mar 28 2017 at 3:59pm
If it's just a higher tax rate on profits in Australia, that's not going to make much of a difference. These big companies will still use transfer pricing to divert their profits to other countries. What we need is a set percentage of tax on gross turnover in Australia - that's much more difficult to get around.

jaytee Mar 28 2017 at 6:41pm
I think that I agree SDR. Been tossing ideas for fair tax about a bit, and it all gets back to making the bludgers - local or foreign - pay. A low turnover tax backed by savage fines for any misbehaviour seems a part of the mix that we and the world needs.

JohnCanberra, Mar 28 2017 at 7:13pm
As I have said on many occasions - we need a GST on everything, that GST being set to the level equivalent of normal tax obligations under the current corporate tax system. Then the level of profit won't matter and so can't be fiddled - the level of sales will determine the obligation.

CliveManly West, Mar 28 2017 at 7:24pm
I agree, but of course this government is just going through the motions. Smoke and mirrors and loads of ear-bashing by the Federal Treasurer.

bencoffs, Mar 28 2017 at 5:51pm
another joke policy to pretend the useless libs are doing something....dont fall for it.
they will rack up $100s of billions in debt rather than tax the big greedy companies who exploit our commonwealth...

KEEPITREALSYDNEY, Mar 28 2017 at 6:14pm
Lip-service as usual from the liberal nepotists. These measures are window dressing whilst the multinationals will continue to receive massive tax write offs and Public subsidies. Today the banks boosted their share values on the strength of their purely greedy self awarded interest rate rise, a glimpse of the business plan behind the looming housing bust.

2017 Optimist Mar 28 2017 at 6:44pm
$100m a year from 2 years from now, when the budget deficit is heading for $50bn. Wow!! Crisis averted.
These guys have no idea, go after the big rocks, not the pebble on the beach.

Eastbrisbanite Mar 28 2017 at 7:39pm
Hard to believe that the government is fair dinkum about taking on the multinationals.
Have they replaced the thousands of ATO staff retrenched 2 years ago ?
No!
Enough said!

gc Mar 28 2017 at 8:53pm
So now the lefties are still complaining . LNP have done what the CFMEU ALP never did...tax multinational companies.
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John Smith
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Re: Mal governs while Shorty stagnates
Reply #2 - Mar 28th, 2017 at 11:07pm
 
Mal governs while Shorty stagnate


mal governs?  Grin Grin Grin Grin

the libs were dragged kicking and screaming into introducing this legislation
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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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juliar
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Re: Mal governs while Shorty stagnates
Reply #3 - Mar 29th, 2017 at 5:40am
 
Mr Smith, brim full of indignation and not much else, flies into a deny and lie huff. Another intellectual powerhouse just like LW.

The lies and denies just never stop. It has required international cooperation to achieve some progress on this difficult matter.

Even Joe Hockey was discussing it at the international meeting on this some years ago.

But the lying denying Lefties NEVER let the FACTS get in the way of a good LIE and DENY.

Just like Labor's vast cesspool of corruption.

Now wait for the inevitable Lefty copy and dribble scribble.
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« Last Edit: Mar 29th, 2017 at 5:46am by juliar »  
 
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Its time
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Re: Mal governs while Shorty stagnates
Reply #4 - Mar 29th, 2017 at 7:35am
 
Attention seeking again juLiar  Cheesy, have you ever considered some actual employment instead of embarrassing yourself everyday  Cheesy
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juliar
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Re: Mal governs while Shorty stagnates
Reply #5 - Mar 29th, 2017 at 7:50am
 
And that intellectual giant LW unable to even comprehend the topic takes his frustration out on the poster.

LW what's it like to be dumb ?

now wait for the furious Lefty copy and dribble scribbles.
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John Smith
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Re: Mal governs while Shorty stagnates
Reply #6 - Mar 29th, 2017 at 7:55am
 
juliar wrote on Mar 29th, 2017 at 7:50am:
LW what's it like to be dumb ?



why are you asking him? It's the only area you are eminently qualified in
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juliar
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Re: Mal governs while Shorty stagnates
Reply #7 - Mar 29th, 2017 at 8:03am
 
Well Mr Smith you are eminently qualified to answer. Come on now get angry and amuse the readers.
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Re: Mal governs while Shorty stagnates
Reply #8 - Mar 29th, 2017 at 8:41am
 
juliar wrote on Mar 29th, 2017 at 7:50am:
And that intellectual giant LW unable to even comprehend the topic takes his frustration out on the poster.

LW what's it like to be dumb ?

now wait for the furious Lefty copy and dribble scribbles.


55  Grin 45  Cry
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John Smith
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Re: Mal governs while Shorty stagnates
Reply #9 - Mar 29th, 2017 at 9:13am
 
juliar wrote on Mar 29th, 2017 at 8:03am:
Well Mr Smith you are eminently qualified to answer. Come on now get angry and amuse the readers.


no prizes for second place dopey. You even had to copy my wording  Grin Grin Grin Grin Grin
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Re: Mal governs while Shorty stagnates
Reply #10 - Mar 29th, 2017 at 10:01am
 
There there Mr Smith don't fret, you cannot help being dumb.

Do you think it might be a result of your Socialist brainwashing as a little kiddie ?
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Re: Mal governs while Shorty stagnates
Reply #11 - Mar 29th, 2017 at 11:14am
 
juliar wrote on Mar 29th, 2017 at 10:01am:
There there Mr Smith don't fret, you cannot help being dumb.

Do you think it might be a result of your Socialist brainwashing as a little kiddie ?


Pour sole , you're taking the reality of your impending annihilation hard  , after Labor have been in for 7 or 8 terms the libs may , but highly unlikely , get another shot
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Re: Mal governs while Shorty stagnates
Reply #12 - Mar 29th, 2017 at 1:27pm
 
juliar wrote on Mar 29th, 2017 at 10:01am:
There there Mr Smith don't fret, you cannot help being dumb.

Do you think it might be a result of your Socialist brainwashing as a little kiddie ?


no fretting involved. Why would I fret at pointing out your utter stupidity?
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Re: Mal governs while Shorty stagnates
Reply #13 - Mar 29th, 2017 at 1:28pm
 
Its time wrote on Mar 29th, 2017 at 11:14am:
Pour sole


Grin Grin Grin

he hasn't used that in a couple of weeks

maybe he is capable of learning  Shocked Shocked Shocked
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Re: Mal governs while Shorty stagnates
Reply #14 - Mar 29th, 2017 at 8:24pm
 
A PM has no entitlement to Govern - he is not Der Fuhrer and we are not his serfs - he may ONLY govern his own Party in a situation in which his position is dependent on that same Party... same applies to the people.  There will be no Master here and only ONE mistress - The People!

He SERVES us first and foremost or he gets Das Boot...

...
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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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