4/14/2017 PrintArticle:WhichofAustralia'sbiggestcompaniesarenotpayingtax

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WhichofAustralia'sbiggestcompaniesarenotpayingtax
NassimKhademandCraigButt
Published:December17,20155:21PM

MichaelPascoe:ScottMorrisonwedgeshimself
Multinationaloilandgasgiantspayingnopetroleumresourcerenttax
WhichofAustralia'sbiggestcompaniesarenotpayingtax
Toptencompaniespayingtheleasttax
Outof1539ofAustralia'slargestcorporateentities,38percentdidnotpayanytaxin201314.

TaxCommissionerChrisJordanhasreleasedthetaxdetailsofcorporateentitieswith$100millionormoreannual
turnover985ofwhichareforeignowned,and554ofwhichareAustralianforeignentities.

The1539companieshadacombinedturnoverof$1.6trillioninturnover,$169.9billioninprofit,andpaidacombined
$39.9billionintax.

Therewere579localandforeignbasedcompaniesthatpaidnotaxin201314whichhadacombinedturnoverof$405.9
billionandataxableincomeof$4billion.

Thenilresultiseitherbecausetheydidnotpayanytax,hadoffsetsagainstprofitsthatreducedtheirtaxtozero,or,they
madealoss,whichtheTaxOfficereportsasnil.

Certainindustriesinthe201314incomeyearwerestillrecoveringfromtheglobalfinancialcrisiswithsignificantcarried
forwardlosses,baddebtsorrestructuringactivitiesunderway.

Transfieldwith$2.8billionturnover,hadtaxableincomeof$16million,andzerotax.

Chevron,whichrecentlylostagainsttheATOintheFederalCourt,butwillbechallengingthedecision,hadturnoverof$3
billionbutpaidnottax.

Adani'sAbbotPointTerminalinQueenslandwithaturnoverof$268millionalsopaidnotax.

CSLhad$2.1billionturnover,$160millionintaxableincomeandpaidzerotax,howeverthecompanysaidtheturnover
figureincludedoverseasprofitsalreadytaxed,andtaxowingwasoffsetbycreditsforitsR&DworkinAustralia.

NewsAustralia,whichhadaturnoverof$3.9billionbetweenitsAustralianarms,had$97.2millioninnetincomelastyear
andpaid$4.2millionintax.

teinhoffHoldings(ownedthroughtheNetherlandsandwithkeybrandsFreedom(furniture),Snooze(bedding)andBuy
S
LeatherRepublic)hadatotalincomeof$431million,taxableincomeof$150andpaidnotax.

FairfaxMediahad$1.7billioninturnover,$69.8millioninnetincomeandpaid$16.1millionintax.

Somepaidtax,butmuchnotmuchrelativetoincome.Forinstance,Macquariehadturnoverof$8.1billionbutpaidjust
$127.9millionintax.

MacquarierunsaMarchfinancialyear.IntheyeartoMarch2015itdeclaredthatnetprofitrose27percentfrom$1.28
billionto$1.62billion,aftertaxthatrosefrom$827millionto$899million.

RACVandRACQbothpaidnotaxdespitenetincomesof$119millionand$54.6million.

NappymakerUnicharmAustraliapaidjust$3intaxlastyear(enoughtobuyan80packofitsbabywipes)outofa$10
profit.Ithadaturnoverof$130millionoverthesameperiod.

Taxminimisationnottakenlightly

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4/14/2017 PrintArticle:WhichofAustralia'sbiggestcompaniesarenotpayingtax

LaborSenatorSamDastyari,whohaschairedtheSenateinquiryintocorporatetaxavoidance,toldFairfaxMedia:"It's
timetobringthesepracticestoanend.Itdoesn'tpassthesnifftestthatallthesecompanieshavelegitimatereasonsfor
payingnotax."

HesaidtougherantiavoidancemeasurespassedbytheCoalitiongopartofthewaytostoppingcorporatetaxavoidance,
butitwas"nowherenearenough".

AustralianGreensleaderRichardDiNatalesaid:"theymightbeabletoaffordthebesttaxlawyerstohelpthemstayahead
oftheparliamentbuttheywon'tbeabletoescapethecourtofpublicopinion".

"Itwillnowbeuptothesecompaniestojustifytheirtaxarrangements."

TaxCommissionerChrisJordansaid:"taxshouldmattertothesecompanies"."Itisnotsomethingtobetakenlightly."

While"notaxpaiddoesnotnecessarilymeantaxavoidance",hesaid"anycompanieswithunusualfinancialortaxation
numbersarecloselyinvestigatedbytheATO".

"...Wedohavesomesignificantdisputeswithsomeofthem".

"Someoftheseforeignownedcompaniesareoverlyaggressiveinthewaytheystructuretheiroperations."

TaxJusticeNetworkspokesmanMarkZirnsaksaidmanycompanieshadmadenoefforttoexplaintheirtaxaffairstothe
generalpublicandmanyhadnotfiledfinancialreportswithASIC.

"Anycompanythatnowcomplainsitisfacingtoughquestionsaboutitstaxaffairsonlyhasitselftoblame,"hesaid.

Energyandresourceswerethesectorswiththehighestlevelofnonpayment.FossilfuelcompaniessuchasExxonMobil
Australia,ChevronAustralia,PeabodyAustralia,andWhitehavenareamongthosethatpaidnotaxfor201314,
GreenpeaceAustraliaheadofcampaignsDominiqueRowesaid.

"Whatwe'reseeingisaseriesoftactics,suchascompanieswritingofftheirlosses,inordertoavoidpayingtax,"shesaid.

BCAwarnsagainstmisinterpretation
BusinessCouncilofAustraliachiefexecutiveJenniferWestacottcautionedagainstmisleadinginterpretationsof
data."Companiesdonotpaycompanyincometaxonrevenue(totalincome)theypayitonprofitsafterpayingall
expensesincludingwages,capitalreplacement,suppliercosts,fleetcostsandotheroperatingexpenses,"shesaid.

MsWestacottsaidmanysmallandmediumsizedbusinessesdidnotmakeaprofitinagivenyear,"andevenlarge
businessesgothroughcycleswhereprofitsfromlargeinvestmentstaketimetoberealised".

Shesaidthecompanieslistedaccountedfor$40billionofthe$67billionincompanytaxpaidin201314.

AustralianChamberofCommerceandIndustrybossKateCarnellsaid:"Wemustfacethefactthatweakereconomic
conditionsarehurtingthebottomlineformanybusinessesandit'snotsurprisingthatlossmakingcompaniesarenotliable
forprofittaxes."

ATOchallengingaggressivearrangements
TheATOwouldcontinuetochallengethemoreaggressivearrangements."Weareresoluteaboutensuringcompaniesare
notunreasonablyplayingontheedge,"MrJordansaid."Iftheydo,theycanexpecttobechallenged."

AsFairfaxMediareported,overhalfofthecompaniesonthelisthavebeensubjecttoATOrevieworauditoverthepast
threeyears.

HesaidthefederalgovernmentwasworkingwiththeBoardofTaxationtogofurtheranddevelopavoluntarycodesothat
companiescantelltheirowntaxstory.

"Largecorporatesnowhavetoconsidertheimpactoftheirtaxinformationasafactorinmanagingtheirreputationwith
themarkets,theirshareholders,theirconsumersandintheAustraliancommunity,"hesaid.

TheATO'slististheresultoftaxdisclosurelawspassedundertheformerLaborgovernmentthatrequirethe
Commissionertopublishthetaxdetailsofpubliccompanieswith$100millionormoreannualturnover.

Thetaxinformationofabout300privatecompanieswillbereportedinMarchnextyear.

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