John U
MTB Precision
If you are comparing this behaviour to a billionaire or major company paying no tax, it is a ridiculous comparison.
Panama Papers
- Thread starter Elbo
- Start date
pharmaboy
Eats Squid
Someone mentioned greed - greed is almost ubiquitous, i'm guilty as much as most here are as well, it's just that no gives a fuck if I claim an extra few hundred bucks a year, no one gives a shit that they paid the carpenter in cash in order to save 10% off their deck, but greed is driving the dishonesty, it's just in this case the amount of money is larger (though the percentage of income might be quite similar)
Jeesus nailed it, let he without sin.......
The problem is in the laws.
pink poodle
気が狂っている男
And the law makers, and those that apply the pressure...there was a move.to stop google et al from transferring their cash around, but the government caved. There was a tax on mining, but the government caved. There was talk of reforming the tax system, but the government caved.
pharmaboy
Eats Squid
It's a bigger issue than a couple of bits of legislation. The reform that is discussed more is the reduction in company tax rate - they need to match others to remove the motivation to transfer profits.
I have no idea if there is a solution, but suspect that any solution needs to be a coalition of nations changing laws, not just ours.
One thing you can be sure of, is that information or commentary provided by journalists is going to sweeping and shallow, and only occasionally show some understanding.
pink poodle
気が狂っている男
That's a bold statement...
Low tax thresholds are a race to the bottom. If that is a company's only motivation for operating in your economy you'll be nudged out by the next tax free competitor. For a generalisation the economies that offer low/no tax are either corrupt and unstable (Panama in the current example) or endowed with heavy fees for their services. Australia needs to consider the wider package, beyond just the tax issue, as to why companies set up here. With our abundant natural resources swiftly becoming unpopular the time to squander is running out.
I thought the ATO had an overall law that covered tax avoidance as a whole. So even though each individual mechanism was legal (nominees etc), when all of these are put together for the purpose of avoiding tax, then you get pinged.
Obviously it's a very grey area and not as simplistic as that.
Obviously it's a very grey area and not as simplistic as that.
pharmaboy
Eats Squid
Some shallow reading for you
http://taxfoundation.org/article/corporate-income-tax-rates-around-world-2015
Ireland of course sticks out for attracting business with a low rate and stable corrupt free govt.
Watched some senate hearings on this topic, and what struck me most is how completely clueless Christine Milne was - dumber than dogshit, I just can't fathom how she got to such a position of influence in Australian politics. I also know someone who was interviewed, and again, the general ignorance of multinational accounting seemed quite clear - the general thrust was they couldn't believe that anyone would run an operation that makes small profits, and therefore they must be lying - always the downside of course where you have a group of senators interviewing and questioning people who are universally far better educated and much smarter than them. If they had just kept to the couple of online businesses they may have learnt something.
Given the size of Australia, we really just need to start living within our means, I can't see the future producing any change in the tax take of significance (we've had our period of massive growth)
Flow-Rider
Burner
People will just never get it or don't want to understand this. I see large companies close down all the time with lots of debt and creditors come in and disburse what's left. People loose jobs and other businesses loose money that was owed to them, then they open a business off shore where the labour is cheap. We have a lot of red tape and issues in this country, it slowly sliding to the bottom.
This conversation of the topic title shouldn't be only aimed at Australian businesses. It's a global issue where people have laundered money and so on, people in high places around the world used their authority and abused people's trusts to make financial gains in the way of bribes and hidden it in offshore accounts. The release of these documents are going to be lethal to some by ending their career in what ever they do.
PINT of Stella. mate!
Many, many Scotches
Aren't Panama Papers what the rappers use for rolling their fat bluntz?
Flow-Rider
Burner
That's how you bribe your men.
Drizz
Likes Dirt
Well.....the fallout is certainly real. In UK it have went from "it's a private matter" to the who's who of politics all have to publish their tax return within a week, I am not sure how exactly publishing your tax return proof you didn't evade tax but it certainly placate some of the media lynch mobs. Now anyone that doesn't publish their tax return would be hard for them to win elected offices. FCA also warned all the companies to disclose their dealings over Panama papers.
TBH everything that's been coming out so far seems to be very innocuous so far but boy are the media making a meal out of it. (At least in some countries). I can see the authorities will use this as kosh and beat more fines out of some of the banks!
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TBH everything that's been coming out so far seems to be very innocuous so far but boy are the media making a meal out of it. (At least in some countries). I can see the authorities will use this as kosh and beat more fines out of some of the banks!
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floody
Wheel size expert
Agreed. Few in the population need to spend more than hundreds, let alone thousands, on tax preparation. So make the threshold INCREDIBLY generous, say $25,000. Should be a reasonable recoup in that.