They may not be breaking the law, but the taxes multinationals pay are not proportional to the profits they are raking in. That’s something laws passed earlier this week seek to change.
Earlier this week, a crucial piece of legislation made its way through parliament. It didn’t receive a lot of fanfare, but it’s a long-overdue tweak to our tax system.
While the company tax rate in Australia is 30 per cent for most businesses with a turnover of $50 million or more, firms can reduce their taxable income, and therefore the amount of tax they pay.Some deductions are fair and reasonable: for example, claiming deductions for day-to-day business expenses including materials you need to supply a good or service. Other strategies are…questionable.
And in 2017, the Australian Taxation Office found itself in a legal battle in the ongoing crusade against companies paying less tax through loopholes in the system, coming out on top against resource giant Chevron. The taxes the likes of Amazon, Apple and Microsoft pay are not always proportional to the profit they’re pocketing.The Federal Court eventually ruled Chevron’s Australian subsidiary should not be allowed to claim interest on its borrowings from the rest of Chevron Group as if they were two standalone companies. In the 2022-23 period, Chevron paid more than $4 billion in tax.
This is supposed to deter companies from creating artificial structures in low or no-tax territories, such as the Cayman Islands, in a bid to avoid paying taxes in places they actually do their business in.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia v Pakistan ODI, LIVE updates: Australia out to wrap up series victory in AdelaideAfter captain Pat Cummins’ heroics with bat and ball at the MCG, the Australian ODI side move to Adelaide to take on Pakistan.
Read more »
Australia v Pakistan ODI, LIVE updates: Australia out to wrap up series victory in AdelaideAfter captain Pat Cummins’ heroics with bat and ball at the MCG, the Australian ODI side move to Adelaide to take on Pakistan.
Read more »
Australia v Pakistan ODI, LIVE updates: Australia out to wrap up series victory in AdelaideAfter captain Pat Cummins’ heroics with bat and ball at the MCG, the Australian ODI side move to Adelaide to take on Pakistan.
Read more »
Jacinta Price ridicules Cricket Australia’s latest Australia Day pledgeIndigenous Senator Jacinta Nampijinpa Price has slammed Cricket Australia after the national sporting body committed to consulting with Indigenous people about any matches held on Australia Day.
Read more »
Australia v Pakistan one-day international LIVE updates: Australia win toss; bowl firstAustralia takes a new-look batting line-up to the MCG for the first of three one-day internationals against Pakistan.
Read more »
Australia v Pakistan one-day international LIVE updates: Australia win toss; bowl firstAustralia takes a new-look batting line-up to the MCG for the first of three one-day internationals against Pakistan.
Read more »