Australian cracks down on tax avoidance by 30 global corporations

[buctootim]

The legislation will be introduced to Parliament on Tuesday. Mr Hockey said it was "pretty evident" which companies would be targeted.

Big multinational firms such as Google, Apple and Microsoft have been accused of moving their profits to countries with lower rates of tax.

The move will see Australia join the UK in its bid to tackle alleged tax avoidance by big firms, although Mr Hockey said the proposed legislation would go "much further" than Britain's current tax laws.http://www.bbc.co.uk/news/business-32687822

 

Good for them. I wonder whether it will work and whether the Conservative government will have the balls to do the same, or will it claim we have to be business friendly otherwise they might leave us and take all the nice jobs with them (especially the non exec director ones).

[shirleysfc]

Would be nice if Dave & co did the same here, but they won't.

[Hockey_saint]

The legislation will be introduced to Parliament on Tuesday. Mr Hockey said it was "pretty evident" which companies would be targeted.

Big multinational firms such as Google, Apple and Microsoft have been accused of moving their profits to countries with lower rates of tax.

The move will see Australia join the UK in its bid to tackle alleged tax avoidance by big firms, although Mr Hockey said the proposed legislation would go "much further" than Britain's current tax laws.http://www.bbc.co.uk/news/business-32687822

 

Good for them. I wonder whether it will work and whether the Conservative government will have the balls to do the same, or will it claim we have to be business friendly otherwise they might leave us and take all the nice jobs with them (especially the non exec director ones).

 

Crikey, I thought you were talking about me! I do have a very unfortunate story about my distant relative Joseph however.

[SuperMikey]

I doubt we'll see a similar thing happen over here but it goes to show that it CAN be done. Those with influence just refuse to do it and make the plebs pay the price instead..

[KelvinsRightGlove]

I doubt we'll see a similar thing happen over here but it goes to show that it CAN be done. Those with influence just refuse to do it and make the plebs pay the price instead..

 

You mean Cameron, who was born into a mega wealthy family (not that that is something for nothing) and to a father who makes use of various fudges and domiciled statuses to pay less tax, and also went to an elite school that charges thousands per term but calls itself a charity (for tax reasons) isn't that interested on closing these loopholes? Shocking.

 

I mean he did have a pop at Jimmy Carr, but then had almost nothing to say about Gary Barlow. I'm sure Barlow being a high profile Tory supported is purely coincidental, right?

[Torres]

Before anyone else joins these five in wailing at the nasty Tories being in bed with their big business friends and afraid to do something similar, you should probably remember the announcement by the Chancellor last year to do the same thing

 

http://www.theguardian.com/business/2014/dec/03/autumn-statement-2014-osborne-to-introduce-google-tax

 

Australia - "The new law would allow the Australian Taxation Office to charge tax on profits diverted offshore."

 

Nasty UK Tories - "George Osborne has launched a crackdown on tax avoidance by multinational technology firms such as Google and Amazon, by imposing a 25% levy on profits which are generated in Britain but “artificially shifted” abroad."

[SuperMikey]

Before anyone else joins these five in wailing at the nasty Tories being in bed with their big business friends and afraid to do something similar, you should probably remember the announcement by the Chancellor last year to do the same thing

 

http://www.theguardian.com/business/2014/dec/03/autumn-statement-2014-osborne-to-introduce-google-tax

 

Australia - "The new law would allow the Australian Taxation Office to charge tax on profits diverted offshore."

 

Nasty UK Tories - "George Osborne has launched a crackdown on tax avoidance by multinational technology firms such as Google and Amazon, by imposing a 25% levy on profits which are generated in Britain but “artificially shifted” abroad."

 

A quote from the article:

 

“The chancellor said this will raise a billion over five years, but ultimately this is a tiny proportion of the profits the multinationals he has in mind are generating,” said Toby Ryland, a partner at accountants HW Fisher & Company. “In reality, many of the UK’s double tax treaties with other countries dictate where profits can be taxed. Sweeping measures like this often come to nothing. The chancellor has made the right noises, but most multinationals will be able to side-step these new rules without breaking into a sweat.”

 

So basically this "Google tax" is all fart and no sh!t. At least they acknowledge the problem though, eh?

[hutch]

I doubt we'll see a similar thing happen over here but it goes to show that it CAN be done. Those with influence just refuse to do it and make the plebs pay the price instead..

What can be done? Passing legislation or collecting tax?

[SuperMikey]

What can be done? Passing legislation or collecting tax?

 

Hopefully both, depending on the efficacy of the legislation.

[hutch]

Don't hold your breath

[Torres]

A quote from the article:

So basically this "Google tax" is all fart and no sh!t. At least they acknowledge the problem though, eh?

 

Errrr, it's the same idea that they're using in Australia - you know, the idea that you're lauding and doubting would be introduced here despite it already having been.

Edited 11 May, 2015 by Torres

[SuperMikey]

Errrr, it's the same idea that they're using in Australia - you know, the idea that you're lauding and doubting would be introduced here despite it already having been.

 

Mr Hockey said the proposed legislation would go "much further" than Britain's current tax laws.

 

Seems similar on further reading but it looks as if they're going a bit more hardline with it, although we won't know the full details until it's officially announced tomorrow.

[Bearsy]

if apple have to start paying tax, does that mean they'll charge me more for my iphones? genuine question no trolls pls

[shirleysfc]

Before anyone else joins these five in wailing at the nasty Tories being in bed with their big business friends and afraid to do something similar, you should probably remember the announcement by the Chancellor last year to do the same thing

 

http://www.theguardian.com/business/2014/dec/03/autumn-statement-2014-osborne-to-introduce-google-tax

 

Australia - "The new law would allow the Australian Taxation Office to charge tax on profits diverted offshore."

 

Nasty UK Tories - "George Osborne has launched a crackdown on tax avoidance by multinational technology firms such as Google and Amazon, by imposing a 25% levy on profits which are generated in Britain but “artificially shifted” abroad."

 

Yep I can read thanks Torres. The key parts for you:

 

http://www.bbc.co.uk/news/business-32687822

 

"He described the crackdown as "the first of its kind in the world"."

"The move will see Australia join the UK in its bid to tackle alleged tax avoidance by big firms, although Mr Hockey said the proposed legislation would go "much further" than Britain's current tax laws."

 

http://www.theguardian.com/business/2014/dec/03/autumn-statement-2014-osborne-to-introduce-google-tax

 

"In reality, many of the UK’s double tax treaties with other countries dictate where profits can be taxed. Sweeping measures like this often come to nothing. The chancellor has made the right noises, but most multinationals will be able to side-step these new rules without breaking into a sweat."

 

http://www.zdnet.com/article/hockey-to-introduce-google-and-netflix-taxes-in-budget/

 

"Hockey said that the multinational tax avoidance scheme would be harder than the UK's Google Tax -- which levies a 25 percent tax on diverted profits -- and would give the Australian Taxation Office (ATO) the power to recover unpaid taxes, as well as issue a 100 percent fine for the unpaid taxes plus interest."

 

As I said, would be nice if Dave & co did the same here, but they won't.

[Torres]

Other than the potential penalties varying, it's the same idea as the one that the Tories won't, yet have already, introduced.

[Hockey_saint]

5? I'm having no part of this, all I know is the geezer we're talking about opened the backpacker's place I stayed in sydney and without my knowledge, the receptionist creased up when they saw my name; asked if we were related and after a phone call home, it turned out according to granny Hockey to be true.

 

I am pleased to see he's doing this and I suppose the Osborne comparisons are fair but one can only speculate and say that George may belong to the old boys club that has a lot of execs as members so may not be as inclined to inforce such a bill as the supposedly classless system that they have down under.

[bridgeman]

We can only hope

[Chez]

if apple have to start paying tax, does that mean they'll charge me more for my iphones? genuine question no trolls pls

 

They will just squeeze their suppliers to **** to ensure profits remain the same, keeping unit price low, but they will probably put the prices up, because that will be in line with competitors, who will also be faced with tougher tax laws. I suspect however that they won't end up paying a huge amount of tax. The argument all these companies are taking is that they employ a shed load of people in the uk and the government and the people should be thankful for that and just let them get on with with making their billions tax free without further requests for tax.

[AussieDog]

I like the idea but I would have thought the likehood is that major overseas corporations would either put their prices up OR scale back their operations in Australia. I do think aussies have an overly inflated opinion of themselves and their country's importance in the big scheme of things (and I live there, so it's not an opinion I share too freely in general public...lol). Australia is a continent which has a smaller population than some cities. Now the people we really SHOULD be taxing are entities such as the Banks who rip everyone off and make BILLIONS every year (the "big 4" made over 27 billion in 2013).

[Goatboy]

if apple have to start paying tax, does that mean they'll charge me more for my iphones? genuine question no trolls pls

 

They have a bit of leeway Bear as they already charge you a 'living in England so can afford it' tax.

[Deano6]

They will just squeeze their suppliers to **** to ensure profits remain the same, keeping unit price low, but they will probably put the prices up, because that will be in line with competitors, who will also be faced with tougher tax laws. I suspect however that they won't end up paying a huge amount of tax. The argument all these companies are taking is that they employ a shed load of people in the uk and the government and the people should be thankful for that and just let them get on with with making their billions tax free without further requests for tax.

 

Why wouldn't they be squeezing their suppliers to **** already to generate highest profits possible? I'd be p1ssed if I were an Apple shareholder (full disclosure: I am not) and they have expense leakage that they could be addressing that quickly and easily.

[niceandfriendly]

What makes you think the Tories would follow suit? That's the complete opposite of what they stand for. Big business tax avoidance is their forte.

 

They're supporting TTIP for ****s sake, legislation which makes it EASIER for big business to screw everyone around. They'll be able to take governments to court for trying to get them to pay more tax and play by the rules. Which makes anyone who voted Conservative in the last Election either completely ignorant or just a scum bag effectively.

[Hockey_saint]

What makes you think the Tories would follow suit? That's the complete opposite of what they stand for. Big business tax avoidance is their forte.

 

They're supporting TTIP for ****s sake, legislation which makes it EASIER for big business to screw everyone around. They'll be able to take governments to court for trying to get them to pay more tax and play by the rules. Which makes anyone who voted Conservative in the last Election either completely ignorant or just a scum bag effectively.

 

Could you please put that on the general election thread because it's nice to see I'm not the only one with this view.

[Torres]

What makes you think the Tories would follow suit? That's the complete opposite of what they stand for. Big business tax avoidance is their forte.

 

What makes me think they'd follow suit? The fact that they've already done it, mostly.

 

Which makes anyone who voted Conservative in the last Election either completely ignorant or just a scum bag effectively.

 

Oh, the uncalled-for irony.

[Torres]

Amazon to begin paying corporation tax on UK retail sales

 

http://gu.com/p/496nm

[hutch]

Well that's a stunning breakthrough for the taxman. Nobody else in the UK pays corporation tax on their sales.

 

Well done Amazon.

[bridge too far]

Here's an article about how the 'big boys' continue to avoid tax

 

http://www.bbc.co.uk/news/business-32914372

[trousers]

Here's an article about how the 'big boys' continue to avoid tax

 

http://www.bbc.co.uk/news/business-32914372

 

What I don't understand (amongst many other things....) is how this ruse will succeed.

 

The article highlights: "The Employment Allowance legislation makes it clear that artificially created companies cannot claim the allowance."

 

And also says: "The allowance enables companies to claim £2,000 off their annual employers' National Insurance bill and was meant to encourage small businesses to take on more workers."

 

So, surely all HMRC have to do is decline the claim if it comes from an "artificially created company". In other words, what's stopping HMRC nipping this in the bud at source rather than, as the article goes on to say, go through a funds recovery process which may not be successful?

 

Just don't pay the allowance that is claimed in the first place, surely?

[moonraker]

I doubt we'll see a similar thing happen over here but it goes to show that it CAN be done. Those with influence just refuse to do it and make the plebs pay the price instead..

 

A proposed bill proves nothing, it is the operation of the bill that will prove whether Australia has really tackled the problem, We all know that the mock criminals who market themselves as Tax Accountants / Advisor will find a loop hole or two. Loop holes are nearly always the result of omission rather than commission, meaning the legislatures intent cannot be fully delivered. The UK Government has already embarked on the legislature to address this issue. So you are mistaken in you assertion.