Companies avoiding tax in Australia…

Miscellaneous

Qantas CEO Alan Joyce, one of the most prominent supporters of the Turnbull government’s proposed big business tax cut, presides over a company that hasn’t paid corporate tax for close to 10 years.

Here is a list of companies avoiding tax in Australia –

Name Tax paid Total income ($) Sector
ADANI ABBOT POINT TERMINAL HOLDINGS PTY LTD 0 970,055,950 Commodities
ADECCO HOLDINGS PTY LTD 0 1,506,053,631 Miscellaneous
ALINTA HOLDINGS 0 4,216,609,398 Energy
AMCOR LIMITED 0 7,055,763,985 Miscellaneous
AMERICAN EXPRESS AUSTRALIA LIMITED 0 2,783,800,000 Investment/foreign banks
ANSELL LIMITED 0 971,946,789 Miscellaneous
APN NEWS & MEDIA LTD 0 1,150,853,425 Media
APPLE PTY LTD 338,270,281 22,072,209,825 Technology
ATLASSIAN AUSTRALIA 1 PTY LTD 0# 967,196,944 Technology
BABCOCK & BROWN INTERNATIONAL PTY LTD 0 1,722,376,955 Investment/foreign banks
BAE SYSTEMS AUSTRALIA HOLDINGS LIMITED 0 4,080,795,842 Miscellaneous
BARCLAYS BANK PLC 0 1,435,935,548 Investment/foreign banks
BILLABONG INTERNATIONAL LTD 0 1,775,841,709 Miscellaneous
BLUESCOPE STEEL LTD 0 14,549,521,747 Commodities
BNP PARIBAS S.A 0 9,319,136,945 Investment/foreign banks
BROADSPECTRUM LIMITED 0 8,616,335,336 Miscellaneous
CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND 0# 239,541,563 Business advisory and accounting
CPA AUSTRALIA LTD 1,967 493,025,000 Business advisory and accounting
CSR LIMITED 0 5,190,938,106 Commodities
DIMENSION DATA AUSTRALIA PTY LTD 0 3,674,993,802 Technology
EMIRATES AIRLINE 0 546,639,137 Airlines
ENERGYAUSTRALIA HOLDINGS LIMITED 0 23,901,332,940 Energy
ETIHAD AIRWAYS PJSC 0 1,082,573,475 Airlines
EXXONMOBIL AUSTRALIA PTY LTD 0 24,810,160,190 Commodities
FAIRFAX MEDIA LIMITED 53,166,813 4,580,513,275 Media
FOXTEL CABLE TELEVISION PTY LIMITED 0 6,006,084,503 Media
FOXTEL MANAGEMENT PTY LTD 0 810,717,934 Media
GLENCORE GRAIN HOLDINGS AUSTRALIA PTY LIMITED 0# 4,132,120,862 Commodities
GLENCORE INVESTMENT PTY LIMITED 0 27,929,635,183 Commodities
GOLDMAN SACHS HOLDINGS ANZ PTY LIMITED 0 1,844,322,093 Investment/foreign banks
GOOGLE AUSTRALIA PTY LIMITED 37,423,599 1,298,266,767 Technology
GPT MANAGEMENT HOLDINGS LIMITED 0 498,869,075 Property and construction
GROCON GROUP HOLDINGS PTY LTD 0 1,275,925,113 Property and construction
HOCHTIEF AUSTRALIA HOLDINGS LIMITED 0 718,078,437 Property and construction
JPMORGAN CHASE BANK NATIONAL ASSOCIATION 0 2,160,011,920 Investment/foreign banks
LENDLEASE CORPORATION LIMITED 0 24,388,062,555 Property and construction
MACKAY SUGAR LTD 0 1,373,222,981 Commodities
MYOB GROUP LIMITED 0 783,678,307 Business advisory and accounting
NEC AUSTRALIA PTY LTD 0 1,221,261,407 Technology
NEWS AUSTRALIA HOLDINGS PTY LIMITED 0 8,532,558,083 Media
QANTAS AIRWAYS LIMITED 0 46,125,938,374 Airlines
QATAR AIRWAYS (Q.C.S.C) 0 1,159,924,321 Airlines
ROYAL BANK OF SCOTLAND PLC (AUSTRALIA BRANCH) 0 1,384,940,790 Investment/foreign banks
STOCKLAND CORPORATION LTD 0 4,568,483,833 Property and construction
THE BOSTON CONSULTING GROUP PTY LTD 0 398,014,708 Business advisory and accounting
TIGER AIRWAYS AUSTRALIA PTY LTD 0 1,349,159,787 Airlines
TRANSURBAN HOLDINGS LIMITED 0 5,807,731,296 Property and construction
VIRGIN AUSTRALIA HOLDINGS LIMITED 0 13,318,284,353 Airlines
VODAFONE HUTCHISON AUSTRALIA PTY LTD 0 11,831,941,032 Miscellaneous

The period roughly coincides with Mr Joyce’s tenure at the helm of Australia’s flag carrier.

Despite generating income of $106.4 billion, the flying kangaroo has avoided paying tax on that bounty since 2009, thanks to Australia’s generous tax concessions, depreciation provisions and the ability to offset company losses against past and future profits.

New analysis by the ABC reveals Qantas is not alone – its tax behaviour is consistent with about 380 of Australia’s largest companies. ATO corporate tax transparency data – confirmed in email exchanges with company representatives – reveals about one in five of the country’s biggest companies have paid no tax for at least the past three years.

corporate tax
Alan Joyce, the CEO of Qantas, is a major supporter of corporate tax cuts in Australia. Photo: AAP

High-flyers land no tax

Not one of Australia’s biggest airlines has paid corporate tax since at least 2013, including Virgin and its subsidiary Tigerair, Etihad, Emirates and Qatar.

Each one of those companies has sold billions of dollars worth of tickets in Australia.

When asked for an explanation, both Qantas and Virgin pointed the ABC to their historical losses and the entirely legitimate use of Australia’s tax laws that allow them to offset those losses against future profits indefinitely.

Both companies were at pains to point out that, notwithstanding their zero corporate tax liabilities, they had continued to collect and pay departure taxes, fuel and alcohol excises, payroll tax, GST and FBT.

Presumably that’s what the Etihad spokesman was alluding to in his statement to the ABC.

“Etihad is fully compliant with all Australian tax requirements, and has paid all the taxes it is obligated to do so under Australian law.”

EnergyAustralia’s tax-free decade

At a time when Australian households have seen their electricity prices soar, the country’s leading energy retailer, EnergyAustralia hasn’t been paying corporate tax. EnergyAustralia paid no corporate tax for the decade to 2016.

For the three years to June 2016, EnergyAustralia’s 1.7 million electricity and gas customers across eastern Australia helped it record $24 billion worth of income on which no tax was paid.

An EnergyAustralia spokesperson said the company’s performance, “reflects how the power-generation sector is underpinned by assets that were built last century”.

“Since 2006, EnergyAustralia has written down the value of its assets by $1.9 billion.”

How much tax did the big banks pay?

Ten years after the global financial crisis – which they are largely responsible for creating – some of the world’s most prominent investment banks are collecting tidy sums of income in Australia and not paying corporate tax.

Among them is Malcolm Turnbull’s old employer, Goldman Sachs, which recently won a lucrative contract with the NSW government.

Described by Rolling Stone Magazine as, “the great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”, Goldman will be paid $16.5 million as the state’s financial adviser on the sale of the $16.8 billion WestConnex motorway in NSW.

The investment bank generated revenue of $1.84 billion over three years but paid zero corporate tax.

Ditto for JPMorgan Chase which raked in $2.2 billion and hasn’t paid corporate tax since at least 2013.

In one of the most audacious explanations advanced to the ABC for the non-payment of corporate tax, a spokesman for America’s biggest bank said JPMorgan was still suffering the aftershocks of the financial crisis which meant its Australian operations continued to operate at a loss.

But late last year, it emerged JPMorgan Chase agreed to pay a record $13 billion fine to US federal and state authorities in 2013.

The purpose of this fine was to settle claims it had misled investors in the years leading up to 2008.

Could the bank be writing that fine off against its Australian income? The spokesman didn’t care to elaborate.

News Corp pays no tax on $71m profit

All the focus on the tax shenanigans of foreign technology and media companies has diverted our gaze from the taxpaying habits of some of their home grown rivals.

The most obvious one is Rupert Murdoch’s News Corp, which hasn’t paid corporate tax in Australia for at least four years.

The media colossus reported total income of $8.5 billion and even boasted a $71 million profit in 2014/15 but no corporate tax was paid.

The company’s corporate affairs boss, Liz Deegan, wrote to the ABC to clarify that: “News Corp Australia has deductible operating costs and certain tax incentives and allowable credits, like R&D and franking credits, that offset the revenue disclosed.”

Its partly owned pay-TV company, Foxtel, received a $30 million gift from the federal government in the last budget, ostensibly to provide better coverage of female sports.

In the three years prior, Foxtel had also not paid corporate tax. Fairfax, News Corp’s newspaper rival in Australia, paid $53.1 million in corporate tax over the same period.

Credit – https://thenewdaily.com.au/money/finance-news/2018/02/14/australias-largest-companies-corporate-tax-10-years

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