Taxable Income

 
  574M White Guru

Location: Shepparton
This page, https://www.abc.net.au/news/2018-12-13/one-third-of-australian-companies-paid-no-tax-ato/10614916

gives a list of all the big companies in Australia and has commentary from the Australian Tax Office about why some of the biggest companies have not paid tax, and why. There is commentary on that page about the crackdown on multinational tax avoidance had begun to emerge in the latest data as companies restructure their tax affairs to stay within the law.

That's fine, but if you peruse the page, you may get shocked about the amount of income (big bucks) and tax paid (not much).  

Here are figures for Alstom:


ALSTOM TRANSPORT AUSTRALIA PTY LIMITED  
Total income    
250,692,075

Taxable income  
6,343,631

Tax paid
1,903,089

Seems that Kerry Packer's mantra of tax minimisation is alive and well in many companies.

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  michaelgm Chief Commissioner

Given the example above, reducing the company tax rate will make SFA difference.
  Nightfire Minister for Railways

Location: Gippsland
This page, https://www.abc.net.au/news/2018-12-13/one-third-of-australian-companies-paid-no-tax-ato/10614916

gives a list of all the big companies in Australia and has commentary from the Australian Tax Office about why some of the biggest companies have not paid tax, and why. There is commentary on that page about the crackdown on multinational tax avoidance had begun to emerge in the latest data as companies restructure their tax affairs to stay within the law.

That's fine, but if you peruse the page, you may get shocked about the amount of income (big bucks) and tax paid (not much).  

Here are figures for Alstom:


ALSTOM TRANSPORT AUSTRALIA PTY LIMITED  
Total income    
250,692,075

Taxable income  
6,343,631

Tax paid
1,903,089

Seems that Kerry Packer's mantra of tax minimisation is alive and well in many companies.
574M
Big business just hire ex ATO tax Inspectors, to work all the latest tax minimisation tricks for them.
  justapassenger Chief Commissioner

ALSTOM TRANSPORT AUSTRALIA PTY LIMITED  
Total income    
250,692,075

Taxable income  
6,343,631

Tax paid
1,903,089
574M
2.5% gross profit and 1.8% net profit on turnover for Alstom's operations in Australia.

Certainly not lighting the world on fire, but it's just doing enough to ensure an operation intended for strategic purposes (i.e. keeping a foot in the door and retaining the ability to scale up for big ticket contracts) is not acting as a drag on the corporation.
  neillfarmer Chief Train Controller

I think a turnover of $250 mil is a bit more than keeping a foot in the door. The profit figures are a nonsense in that as presented this is a poor business to be in. I wonder what makes Australia such an attractive place if they make no profit? Ah, I forgot, they buy their products from the parent company overseas and probably borrow money from them too.
  ZH836301 Chief Commissioner

Location: BleakCity
Without detailed expenditure you can't fairly pass judgement, since turnover is meaningless.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
Without detailed expenditure you can't fairly pass judgement, since turnover is meaningless.
ZH836301
Spot on. A company can have turnover of AUD$Billions and still lose money and therefore not pay tax for that year. And under the rules in Aus (and pretty much everywhere else I should imagine) those losses can then be offset against profit made in future tax years.

The issue is how the Government writes and enforces the rules. Recent tightening up of enforcement (plus threats of a "google" tax on turnover) has seen the ATO bring in an extra $6Bn so far and there is no sign of it slowing as companies take the carrot before facing the stick.

Most taxpayers push the limits of what they are allowed to do or can get away with. I know a couple of individuals who have been done by the ATO for wildly overstating their expenses and not keeping correct records. It is the government's job to make sure corporates pay their fare share, corporations are just like my mates above, without the stick they will just keep pushing the envelope.

BG
  awsgc24 Minister for Railways

Location: Sydney
How easy is it to avoid other taxes, like:
* GST
* Stamp Duty
* Fuel Taxes
* Land Tax
* Council
* "Sin" taxes on Tobacco and Alcohol, etc.
* etc.?
  BrentonGolding Chief Commissioner

Location: Maldon Junction
How easy is it to avoid other taxes, like:
* GST
* Stamp Duty
* Fuel Taxes
* Land Tax
* Council
* "Sin" taxes on Tobacco and Alcohol, etc.
* etc.?
awsgc24
GST = fairly easy, pay cash no reciept for services, very common still
Stamp Duty = more complicated but can be done, pay part cash, part on the books for property or car purchase to reduce
Fuel Tax = not sure but buying a hobby farm and registering as a primary producer may get you a fuel tax saving on Diesel and of course the family cars all happen to be diesel
Land Tax and Council, not poss as far as I know but never say never!
Sin Taxes - Home Brewing can help here along with making your own Vino Collapso in the garage and swapping some for Chop Chop although that is getting harder to find these days since the Guvmint paid all of the Vino loving Italian growers in the King Valley to stop doing it!

Simples!

And BTW I don't really understand the point of the question in the context of the thread but when a CEO stocks the bar in the office they still pay GST, Sin Tax etc and when he/she buys their mansion they pay more of pretty much all the rest than I do living in my little weatherboard in the bush.

BG

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