Tax on large multinationals from July 1

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  altomic on 04/07/2017 - 10:04

  +2

  this is a complex issue due to the simple fact that most , if not all, multinationals are run from a country which provides tax havens/breaks.

  multi-nationals don't want to part with their taxes because it means less profit. so rather than pay taxes they will pay very smart accountants to redirect profits into legitimate expenses to reduce their taxable income.

  E.g. Starbucks gets out of paying corporate tax as they declare a huge chunk of their income is required for research and development….for coffee.

  also a lot of multinationals conduct financial transactions on the interweb which is extremely difficult to monitor/control. how would the ATO track that? looking at you ebay, paypal, every overseas vendor.

  • 

    MathNerd on 04/07/2017 - 10:06

    Thanks altomic. I was wondering the same too, I couldn't believe the ATO was effectively starting a war, making a lot of corporations very angry. I wonder if they'll release results later on regarding the effect of this 'fair tax' "law" (if it can be called that at all).

  • 

    dasher86 on 04/07/2017 - 11:03

    I haven't read in-depth notes but i will be interested in how they will work out how to tax these multinational corporations.
    Where it be at a revenue level or other margin level and how will they determine what profits are generated in Australia.

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  PAPower on 04/07/2017 - 10:09

  +1

  With the recent tax fraud of $190 mil, I can't trust ATO anymore. And again, the public won't know until they want to tell.

  We'll wait and see but I am certain that it's only a strategic move to fix bad image of ATO after the fraud.

  • 

    D C on 04/07/2017 - 12:14

    The ATO doesn't have the resources to investigate fraud.

    The 190mil 165mil Platus Payroll fraud (ignoring the bloke working for the ATO) was just a run-of-the-mill phoenix operation, you shut down before the bills are due and start up under a new name. Nothing new or novel, builders have been doing it for years. Happens because no-one checks the credentials of company directors.

    As for multinational tax, they fired the people dealing with this exact matter about two years ago. Who's going to be doing it?

    Everyone says "something must be done", but no one wants their taxes to go up (or other services cut) to pay for it.

    • 

      stirlo on 05/07/2017 - 18:28

      As for multinational tax, they fired the people dealing with this exact matter about two years ago.

      And they all went to work for the accounting firms of multinationals

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  carwashhair on 04/07/2017 - 10:09

  +7

  It's a huge waste of advertising money, by a government that wants to be seen to be doing the right thing. In reality, very little will change. These corporations already buy our politicians.

  • 

    altomic on 04/07/2017 - 10:11

    also, every time the Government changes tax laws the Corporations will have smarter tax accountants working for them to find other loop holes to minimise tax

  • 

    Diji1 on 04/07/2017 - 10:50

    +2

    This.

    Do not vote Liberal or labour next election unless you want corporate taxes to continue to fall and taxes on individuals to rise. That is clearly the agenda of both parties and that is easily deduced from their actions.

    The current action is marketing from people we already know are liars explaining how fair they've been. So it's harmful to any idiot that watches the cancer.

    • 

      kctt on 04/07/2017 - 12:52

      +1

      Who do you vote for then if not Liberal or Labour?
      Green and Pauline Hanson look like big No No to me.

      • 

        D C on 04/07/2017 - 17:13

        -1

        Well, the Greens are who you should be voting for, but they turned into just another party more interested in arguing amongst themselves rather than doing anything useful (not a new development) like all the others.

        You only hope is to find an independent who while being unlikely to win, just them getting votes might make the major parties take notice.

        If swinging voters vote Labor or Liberal that doesn't really upset the other, they'll probably swing back next election. If they vote independent, maybe they'll notice.

        Unfortunately most independents are idiots (single issue loonies), while the major parties have too many rusted-on supporters to really be that worried.

        So yeah.

      • 

        D C on 04/07/2017 - 17:25

        @D C: Thinking about it, Calare (country NSW) had a Federal independent for quite a few years, worked well until he died (cancer?) at which point they went back to their usual National Party vote which meant they got ignored again.

        At a State level however they (Orange) decided the National Party was a bit useless and so voted away from the main two and wound up with the Shooters & Fishers Party.

        I don't think the S&F are a particularly good idea for anyone but at least Orange has the attention of the major parties again.

        (Oh right, it's the Shooters, Fishers and Farmers Party now. Oh ok, we're going to the Country Party now since the Nationals aren't.)

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  trustnoone on 04/07/2017 - 12:05

  Not only will companies get around it, for any dollar they're not able to get around, that dollar is going to come to hit us instead.

  So we have federal government with more money, companies with equal money and us with less.

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  stargalaxy on 04/07/2017 - 12:33

  I hate MNC not paying their fair share of tax for Australian revenue while a local small business have to pay the full amount of tax, leaving the small business not able to compete with the MNC. I don't foresee MNC suddenly change their way to pay the proper tax as they will find ways to reduce the tax bill.

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  Surrealblank on 04/07/2017 - 15:45

  +2

  it is more than likely just a bunch of talk without any substantial changes just to appease the public sentiment

  • 

    myusername on 05/07/2017 - 12:31

    they need to create the 'feeling' that something is being done about it, but yeah very doubtful of seeing any real change

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  myusername on 05/07/2017 - 12:31

  how about taxing rupert murdoch?