theguardian.com
Australia's Corporate Tax Transparency Report: A Mixed Picture
Analysis of Australia's corporate tax transparency report, highlighting record tax revenue alongside concerning tax avoidance by numerous companies.
English
United Kingdom
International TradeTransparencyTaxationMultinationalsTax AvoidanceCorporate
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- What is transfer pricing, and how does it relate to the report's limitations?
- Transfer pricing, where multinationals shift profits to low-tax jurisdictions through internal transactions, is a key issue. The report doesn't reveal details about these transactions, which are often complex and involve court cases.
- What information does the report provide about the tax practices of corporations?
- The Australian Taxation Office's report shows total income, taxable income, tax payable, and PRRT payable for corporations with income over $100 million. Taxable income is assessable income minus deductions; the statutory corporate tax rate is 30%.
- What information is missing from the report regarding multinational entities and tax avoidance?
- The report lacks detail on multinational entities' tax practices, including how they interact with global offices and how 1,200 companies avoided paying taxes. It does not provide information on deductions claimed by corporations.
- What is a two-step approach that Australia could take to further combat corporate tax avoidance?
- Australia needs a two-step approach to combat corporate tax avoidance: increased transparency, as seen in this report, and reforming tax laws to tax profits where they are generated. The OECD's tax reform agenda is relevant.
- What were the key findings of the Australian Taxation Office's annual corporate tax transparency report?
- Large companies in Australia paid a record $100 billion in taxes last year, a 17% increase. However, 31% of large companies operating in Australia did not pay any taxes.