Tech Giants Shift Revenues from AustraliaAdded: Wednesday, April 15th, 2015
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Google, Microsoft and Apple have all defended corporate structures that provided for shifting most of the taxable revenue to offshore jurisdictions. News Corp Australia asked senators to impose a goods and services tax on its competitor Netflix. In response, the largest tech firms in the world had to defend themselves and their tax schemes. Google’s branch in Australia and New Zealand refused to disclose its Australian revenues, but revealed that in 2013 the company had paid $7.1m in tax on $46m in profits. However, most of its local revenue was taxed in Singapore, as the Australian branch of the company provides sales and marketing services to Singapore branch.
Microsoft revealed that last year the company had also shifted about $2bn to Singapore in revenue from Australia, declaring only $100m in the country, over the same reason – the company explained that products and services are sold to Australia by Microsoft’s Singapore group, with sales staff being located in Singapore, and Microsoft’s clients being billed by the Singapore branch as well.
Finally, Apple confirmed it had paid about $80m in income tax in Australia – from revenue of more than $6bn. However, Apple doesn’t agree that this amounts to aggressive tax planning.
The tax office is auditing the three companies at the moment, and this is no surprise – they couldn’t expect Australia to like being not paid taxes, could they? In the meantime, the local authorities suggested a so-called “Google tax” in the budget to require multinationals to pay a higher rate. In response, Google suggested that Australian tax breaks for research and development should be spent in smaller start-ups instead of such giants as Google and its fellows. Posted by: Date:
Wednesday, April 15th, 2015
|posted by (2015-04-16 04:44:11)|
|Typical corporate greed. The average person here pays very high taxes and the corporations pay the least in relation to their earnings.|
|posted by (2015-04-16 06:35:58)|
Stop moaning about large corporations not paying their fair share of tax. If you owned and ran a similar company you would do the same. They are not breaking any laws. Whilst it may seem unfair, life is unfair. Just suck it up and get on with it. Oh, and keep using the benefits of Google, etc for free.
"Oh, and keep using the benefits of Google, etc for free."
Get real. Google is not free just another way of certification dumb asses like yourself. Remember 300Baud rate? phone line? BBS? Bulletin board system. I grew up with it. My Dad came home and was trying to make a phone call. I was on the line.
|posted by (2015-04-17 05:57:05)|
|when you get rich you have to stay rich. nothing to do with greed everything to do with surviving. in their eyes at least.|
google is the apple of the internet. herding cattle to sites higher up on the list.
millions of sites you will never know about because you use google @boghound, and im glad for that actually.
|posted by (2015-04-17 06:30:26)|
I see the schoolchildren are at home. Must be holiday time. When you grow up and go out into the real world to earn a living, then get some experience of being in business, you might know what you are talking about but before that happens, go and ask your daddy for some more pocket-money.
|posted by (2015-04-17 09:18:41)|
|Corporations are legally obliged to legally maximize the returns to shareholders on their investments.|
The 2 ways of doing this is to increase revenue and reduce expenses or costs.
Tax minimization through legal means is perfectly legal. Tax evasion is illegal.
If the organization did not employ lawyers and accounts to legally minimize taxes, they would be sued for negligence. Why would you pay 100s of millions in extra tax if you didn't have to simply by hiring a few good lawyers and accountants for just a couple of million?
|This just shows how governments fail at representing the people. No news here.....Apple is raping Australia.....wish I had that tax bracket.|
|Just sounds like business as usual|
|posted by (2015-04-19 21:40:59)|
|There is a big difference between breaking the law and doing what is moral and conducive to a well-functioning society. Like someone else said, Google and these others publicly traded companies have a fiduciary responsibility to be profitable. They're going to take advantage of whatever is available to them, and in a very real way, are required to. (although they have more latitude in their actions than some in this thread would suggest)|
That being said, the same types of people who defend this type of tax evasion are the same people who scream bloody murder if someone on foodstamps buys food they consider too "fancy." Why? They aren't breaking the law. Why get upset? Why not just shut up and move on? Because it's insulting to see someone who is exploiting a system set up to help them by buying food that most of the rest of us can't routinely afford - at least, that's the narrative. And it's understandable. So why do people who get upset by that think it's just fine for huge corporations to exploit the benefits of an educated workforce, infrastructure, large open markets operating within and sustained by (these days) incredibly loose regulatory environments, governmental patent and other IP protection, along with all the other benefits that society provides - and then to see them take all of that profit and shift it out of the country they're making the money from. It's a slap in the face and, like the loafer living on the public dime, is understandably objectionable.
So yeah, it is legal - they hired firms which sole expertise is in stretching tax laws into a pretzel to avoid tax - but it's ridiculous to suggest that upon observing this kind of scheme, that people and the government can't say "this is unfair and needs to change" and then discuss ways to tax corporations at whatever the government determines to be a fair rate. You can't have it both ways - you can't summarily dismiss people with insults because what a company is doing isn't illegal and then whine and moan and complain if a government changes those laws to close or render moot the loopholes the companies were exploiting. Well, I guess you can, but then you're just be a whiny hypocrite. That last part of the article was the most telling: that Google, instead of paying a fairer share of taxes, that the government just take a bunch of the tax breaks that they've been enjoying and give those to smaller shops. Well gee Google, that's awfully generous of you. Oh, and Google's services are anything but free. If you think that you don't pay for Google's services with you information, you profiles, and the steady stream of inventory you provide (searches) then you're fooling yourself. I actually work in this field, and it is crazy crazy insane how much Google - and others - makes from PPC advertising. If anyone wants to get into a lucrative field btw, get into SEM.
|More countries should be like America when it comes to tax no matter how rich or famous you are don't pay your tax and you will go straight to jail|
|Would be great if that applied to all the politicians in the united kingdom of englandshire, or just all politicians in general||
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