[AUS] 579 major companies did not pay tax last financial year - Polidicks

[IMG]http://i.imgur.com/m2zsIse.png[/IMG] [QUOTE]Almost 600 of the largest companies operating in Australia did not pay income tax in the 2013-14 financial year, figures released by the Australian Taxation Office (ATO) show. More than 1,500 companies with annual incomes of more than $100 million are on the list. Of those companies, 960 did pay tax, while 579 companies did not pay tax. The ATO said no tax paid did not necessarily mean companies had been engaged in tax avoidance. Some of those companies incurred tax losses, while others used prior financial year losses or offsets to minimise their tax payment.[/QUOTE] [URL="http://www.abc.net.au/news/2015-12-17/almost-600-companies-did-not-pay-tax-in-2013-14/7036324"]Source[/URL]

But those fucking immigrants and welfare users are stealing the country's tax money, right?

Can't wait for friendlyjordies to do a video about this, I thought it was just the usual companies but not 579 that's endemic

A bunch of developed nations need to get together and agree to crack down on tax evasion together. If one does it alone they will get screwed over.

Wait, it clearly says even in the article that it might not be tax avoidance. Isn't business tax taken off profits and not income? I mean it is great they have huge income but that doesn't necessarily mean they are making a profit. Or is it different in AUS for some reason?

Best tax the poor eh?

[QUOTE=mdeceiver79;49342502]A bunch of developed nations need to get together and agree to crack down on tax evasion together. If one does it alone they will get screwed over.[/QUOTE] Lol. Companies run the developed world. Good luck.

[QUOTE=Fetret;49342516]Wait, it clearly says even in the article that it might not be tax avoidance. Isn't business tax taken off profits and not income? I mean it is great they have huge income but that doesn't necessarily mean they are making a profit. Or is it different in AUS for some reason?[/QUOTE] You're right, it comes off profit, not revenue. Honestly, this isn't surprising. Many companies posted losses last year because of the minerals and resources slump so it's not hard to believe they didn't end up paying tax.

[QUOTE=Fetret;49342516]Wait, it clearly says even in the article that it might not be tax avoidance. Isn't business tax taken off profits and not income? I mean it is great they have huge income but that doesn't necessarily mean they are making a profit. Or is it different in AUS for some reason?[/QUOTE] Companies here pay income tax on their taxable income, which, yes, is roughly their profits, but not exactly. Taxable income is all cash-based assessable income less allowable cash-based deductions. The problem with that graph in the OP is I assume the 'as a percentage of their income' is referring to their accrual-based accounting income, and so it's not a very good figure to use. Accounting profits and taxable income are each calculated heaps differently, and then there's obviously the fact that it represents tax as a proportion of income, rather than of profit. There are many reasons why no tax may have been paid. The taxable income might have actually been a loss in the last period, previous losses could have been carried forward to offset current tax liabilities, or they may have invested heaps in the last period and claimed lots of tax deductions via depreciation. But in all it doesn't really matter, because any dividend released by those companies can be taxed at up to 49% when it reaches the personal shareholders. [editline]18th December 2015[/editline] [QUOTE=mdeceiver79;49342502]A bunch of developed nations need to get together and agree to crack down on tax evasion together. If one does it alone they will get screwed over.[/QUOTE] This isn't tax evasion. This isn't even tax avoidance.

[QUOTE=Antdawg;49342685] [quote=me]A bunch of developed nations need to get together and agree to crack down on tax evasion together. If one does it alone they will get screwed over.[/quote] This isn't tax evasion. This isn't even tax avoidance.[/QUOTE] If they pay 0% of their income then they are paying 0 ie also 0% of their profits, ie paying no tax, ie evading tax. Tax evasion is an issue. Don't try to downplay it or dismiss it. Any money not paid by corporations in tax, is money either paid by you and your neighbour or is money not going into government services providing utility to you ie roads (potentially), healthcare (if you don't have it you should have it), policing, protection and education. You might not care that you are getting swindled, lots of people do care and lots more should. [url]http://www.bloomberg.com/news/articles/2015-04-14/how-10-percent-of-s-p-companies-opted-out-of-paying-u-s-taxes[/url] [url]http://ctj.org/ctjreports/2014/05/dozens_of_companies_admit_using_tax_havens.php[/url] [url]http://thinkprogress.org/economy/2013/10/25/2840141/10-percent-americas-largest-companies-pay-percent-tax-rates/[/url] If at least 10% of the top companies (increasing) in the US pay no tax (+ the many others who pay less than they should) then [b]it will be the case in australia[/b] and the uk and the rest of the developed world.

[QUOTE=mdeceiver79;49342750]If they pay 0% of their income then they are paying 0 ie also 0% of their profits, ie paying no tax, ie evading tax. Tax evasion is an issue. Don't try to downplay it or dismiss it. Any money not paid by corporations in tax, is money either paid by you and your neighbour or is money not going into government services providing utility to you ie roads (potentially), healthcare (if you don't have it you should have it), policing, protection and education. You might not care that you are getting swindled, lots of people do care and lots more should. [url]http://www.bloomberg.com/news/articles/2015-04-14/how-10-percent-of-s-p-companies-opted-out-of-paying-u-s-taxes[/url] [url]http://ctj.org/ctjreports/2014/05/dozens_of_companies_admit_using_tax_havens.php[/url] [url]http://thinkprogress.org/economy/2013/10/25/2840141/10-percent-americas-largest-companies-pay-percent-tax-rates/[/url] If at least 10% of the top companies (increasing) in the US pay no tax (+ the many others who pay less than they should) then [b]it will be the case in australia[/b] and the uk and the rest of the developed world.[/QUOTE] It is not tax evasion, it probably doesn't even qualify as avoidance. Tax evasion is falsely (illegally) reporting tax liabilities, such as under-reporting revenue. Do you really think that major companies, which are required to be audited by an external party every year, face extensive checks by the Australian Tax Office and the Australian Securities and Investments Commission, and with many powerful and influential shareholders, would risk engaging in tax evasion? If they pay 0% tax, there are many reasons as to why. As I have said, and as even the ATO itself has emphasised, companies which do not make a taxable income (a loss) pay no company tax, and previous losses can be carried forward to offset current liabilities, also meaning it's possible that no tax may be payable in future periods. It is not necessarily suspicious for a company to not pay tax in any year.

Honestly, I don't care that companies are using tax mitigation methods because it means the companies I'm invested in through my Super can grow faster and I get greater returns. [editline]18th December 2015[/editline] And again, dividends and if you sell your shares for profit are still taxed.

[QUOTE=Antdawg;49342685]Companies here pay income tax on their taxable income, which, yes, is roughly their profits, but not exactly. Taxable income is all cash-based assessable income less allowable cash-based deductions. The problem with that graph in the OP is I assume the 'as a percentage of their income' is referring to their accrual-based accounting income, and so it's not a very good figure to use. Accounting profits and taxable income are each calculated heaps differently, and then there's obviously the fact that it represents tax as a proportion of income, rather than of profit. There are many reasons why no tax may have been paid. The taxable income might have actually been a loss in the last period, previous losses could have been carried forward to offset current tax liabilities, or they may have invested heaps in the last period and claimed lots of tax deductions via depreciation. [/QUOTE] Thank you! That was pretty much what I thought was going on but wanted to get some clarification.