ABC Item on Business Tax

LLD · Guru

ABC Item on Business Tax

Cupie · Guru

Some of those numbers are mind-boggling.

Wonder why my company didn't make the list.

Get up recently asked what issues they should focus on next year. I put this issue near the top & a fair Newstart payment just behind (even though me & mine have never got Newstart).

Yuglamron · Guru

Before anyone gets their Knickers in a twist and says that company profits are where Superannuation funds come from.

How much would the Tax office rake in if everyone paid their fair share of Tax?

All the companies that have been spruiking the great profits they are making but then we find out they pay no tax.

Qantas

Itunes

Google

FaceBook.

YouTube

And all the rest on the list.

Murdoch went and became a Yank to not pay tax and to the Yanks he's an Aussie so doesn't pay tax there. ( Panama Papers) Revelation.

We had BHP become an offshore company. Wonder Why?

The list is endless.

Yet we have the Smith Family Charity tell us that 60% of kids in Australia are below the poverty line.

The Pensioner too. All below the poverty line.

JayDee · Guru

I am a great believer that if you are a member of the team then you have to wear the guernsey.

Same thing must be said about conducting / operating businesses in the great country of ours.

You make the sales here.... you benefit from the profits of thoses sales so you MUST... therefore pay your fair share of tax.

I must agree with the late Kerry Packer.

No problems in pay tax... but minimise it as our government is not doing a good job in the way the spend it ( Or should I say waste it)

Yes!!!Just imagine how many Billions of dollars the ATO would gain each year if all played by the rules.

Jay & Dee

rockylizard · Guru

JayDee wrote:
I am a great believer that if you are a member of the team then you have to wear the guernsey.
Same thing must be said about conducting / operating businesses in the great country of ours.
You make the sales here.... you benefit from the profits of thoses sales so you MUST... therefore pay your fair share of tax.
I must agree with the late Kerry Packer.
No problems in pay tax... but minimise it as our government is not doing a good job in the way the spend it ( Or should I say waste it)
Yes!!!Just imagine how many Billions of dollars the ATO would gain each year if all played by the rules.
Jay & Dee

Gday...

JayDee ... but unfortunately your last sentence sums up the situation ... "......if all played by the rules."

Therein lies the problem. All business, including just about every business whether small, medium, large or multi-national DO play by the rules.

The rules are set up by governments all over the world. They devise and legislate 'tax rules/concessions/deductions' and the businesses accountants make sure that their client's tax is minimised to the 'letter of the law' - one misguidedly assumes they also do it in the 'spirit of the law'. hmm

Hence, these small, medium, large and multi-national companies often pay minimised, little or no tax - LEGALLY. cry

Governments need to change/tighten the rules regarding the myriad of convoluted concessions/deductions that accountants know backwards and find ways to implement - dare I say manipulate.

Only then will everyone be being paying their 'proper' share of tax.

To get some idea of the extent and variety of concessions/deductions and application of 'losses' visit this site and click into and through the various sub-headings.

https://www.ato.gov.au/Business/Income-and-deductions-for-business/

cheers - the average worker has not got a hope - coz we pay it up front ... even before we get it in our hand - John

-- Edited by rockylizard on Friday 14th of December 2018 10:29:27 PM

rockylizard · Guru

Gday...

ATO gains access to Swiss bank accounts

Cheers - John

Cupie · Guru

rockylizard wrote:
Gday...
ATO gains access to Swiss bank accounts
Cheers - John

Interesting to see that the final comment was to the effect that QANTAS had exhausted its carry forward tax loss concession and was now paying tax.

LLD · Guru

I was very surprised to see QANTAS as not paying tax. So there is an explanation.

rockylizard · Guru

LLD wrote:
I was very surprised to see QANTAS as not paying tax. So there is an explanation.

Gday...

The problem with media, and others, trotting out a long list showing that XXXX business has not paid tax in XXXX year leads to emotive reactions.

QANTAS, as they are fully legally able to do, were offsetting losses from previous years against their current business operations.

Those losses, able to be used as offset against current income, have been exhausted. Hence they are now, and will be paying tax.

I agree it is very annoying that the worker is not able to use the offsets/concessions/deductions as all business can - completely within the law - but multi-nationals can not only use the laws put in place by the government of this country, and most other countries.

Governments, world-wide, are slowly realisling they have for far too long been hand-feeding business enterprises at the expense of their general population. Obviously, ALL governments need to get together and make changes that do not open up 'loopholes' that allow a business in one particular country 'relocating' the operation to another country to minimise their tax. They don't necessarily change the physical location of their business, just where it is registered.

The "fault" is not the businesses - any of them. It is the reluctance of government to tighten the 'environment' they have provided.

cheers - John

msg · Guru

All taxpayers have the same deductions that are allowed to companies. You can deduct any expenses that directly relate to earning that income.
Unfortunately, taxpayers on a wage, have very few deductions that can be claimed as a direct result of earning their income.

All company profits are distributed to shareholders or reinvested in the company. Those shareholders pay the tax. The issue, is when the taxpayers are overseas investors. They are not liable for tax in Australia.

Previous years losses: Are losses that have been incurred in earning income therefore it makes sense to me they should be allowed to deduct these expenses in subsequent years.

Of course this explanation does not take into account the various ways a company might be constructed, subsidiaries etc. Allowances such as investment allowances etc. All too complicated for this little black duck.

Whilst I am not a fan of a global economy, this might be a good reason for one.

LLD · Guru

I think it was Lindsay Fox who said he never pays personal income tax. Everything he spends goes thru the company books as an expense. Tax is paid on his behalf by LINFOX. The tax on company expenses is a lot less than the highest rate of PAYE tax. Lindsay said until top rate of tax is equal to top rate of PAYE tax, company executives will claim everything as as expense (groceries, school fees etc.) Somehow when an exec works long long days (and they do as most are workaholics) every expense they have is determined to help them do their job.

msg · Guru

Probably LINFOX would have paid Fringe Benefits Tax on those expenses. Its a lot higher than any personnel tax rate. That is if its an Australian registered company. lol.

-- Edited by msg on Sunday 16th of December 2018 02:56:28 PM

LLD · Guru

FBT has to be there somewhere. I got to two AFL corporate boxes. First time I was a guest a company supplier - no FBT. Next time I was a "guest" of the company I worked for. What a surprise when my group certificate had a line item "FBT - Presidents Lunch".