ADMINISTRATIVE AGENCIES – AUSTRALIA

BHP acts on Singapore loophole

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Original article by Paul Garvey
The Australian – Page: 21 : 21-Nov-18

The case for abolishing BHP’s dual-listed structure has strengthened after the resources group agreed to transfer full ownership of its Singapore trading hub to its Australian division. BHP will do so as part of a settlement with the Australian Taxation Office regarding the payment of back taxes associated with the trading hub. The settlement is likely to significantly reduce the cost to BHP of reverting to a single primary listing on the Australian sharemarket.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, SHAW AND PARTNERS LIMITED, ELLIOTT MANAGEMENT CORPORATION, TAX JUSTICE NETWORK

BHP to pay $529m bill after taxman wins trading hub case

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 20-Nov-18

BHP Billiton has agreed to pay $529 million in back taxes as part of a settlement with the Australian Taxation Office concerning its Singapore trading hub. There had been claims that BHP was using the hub to reduce its tax payments in Australia, with the settlement relating to its earnings between 2013 and 2018. Previously, 42 per cent of the hub had been owned by BHP’s UK arm, but its Australian arm will now assume 100 per cent ownership. BHP CFO Peter Beaven said he is pleased that the issue has been resolved, while he noted that BHP had already paid over $75 billion in Australian taxes and royalties between 2013 and 2018.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC

Treasury’s housing pitch: don’t loosen lending rules

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Original article by Michael Roddan
The Australian – Page: 2 : 13-Nov-18

The Treasury has urged against any relaxation of housing lending laws in its submission to the banking royal commission’s interim report, stating that any such action would be detrimental to the long-term health of the financial system. Treasury said no benefit is to be gained by offering borrowers loans that they could not afford to repay. Treasurer Josh Frydenberg has indicated that he endorses Treasury’s submission.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESERVE BANK OF AUSTRALIA

Industry staff tapped to opt out of new deal

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Original article by Sally Whyte
The Canberra Times – Page: 16 : 26-Oct-18

The federal Department of Industry, Innovation & Science may use a clause in the Public Service Act that allows departmental secretaries to make determinations about pay and conditions, so long as there is no loss to the benefits of staff. Civil servants are being asked to vote on whether they want the Department to make such a determination, which would see the terms of their current enterprise agreement maintained, or to enter into a new bargaining process with the Community & Public Sector Union. The CPSU wants staff to vote against the determination proposal.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, COMMUNITY AND PUBLIC SECTOR UNION

ATO targets legal privilege

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 1 & 6 : 9-Oct-18

The Australian Taxation Office is questioning the use of legal professional privilege by companies and their advisers. Tax Commissioner Chris Jordan stated in March that the ATO’s views of what constitutes professional privilege seem to differ from those held by taxpayers and their advisers. Deputy commissioner Mark Konza has stated that when he sought to audit the tax affairs of one company, every document he sought access to was claimed to be the subject of professional privilege. The ATO may seek to impose tax promoter penalties on large accounting firms like KPMG and PwC over their role in the promotion of schemes that seek to avoid tax.

CORPORATES
AUSTRALIAN TAXATION OFFICE, KPMG AUSTRALIA PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, ERNST AND YOUNG, DELOITTE TOUCHE TOHMATSU LIMITED, GLENCORE PLC, APPLE INCORPORATED, FACEBOOK INCORPORATED, MICROSOFT AUSTRALIA, CHEVRON AUSTRALIA PTY LTD

What Glencore doesn’t want the taxman to see

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 36 & 37 : 9-Oct-18

Mining company Glencore has lodged proceedings in the High Court against the Australian Taxation Office. Glencore wants to the court to direct that the ATO give up copies of what are known as the Paradise Papers, which relate to files belonging to Bermuda-based law firm Appleby. Of concern to Glencore is information in the files relating to what has been dubbed Project Everest, which outlined a 2014 corporate restructure which saw Glencore relocate $30 billion worth of resource assets away from the "Australian tax net".

CORPORATES
GLENCORE PLC, AUSTRALIAN TAXATION OFFICE, PRICEWATERHOUSECOOPERS, KING AND WOOD MALLESONS, KPMG AUSTRALIA PTY LTD, APPLEBY

Shorten commits: I’ll keep home affairs intact

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Original article by Rachel Baxendale
The Australian – Page: 2 : 3-Oct-18

Opposition Leader Bill Shorten has ruled out breaking up the Department of Home Affairs if Labor wins the next federal election. Labor’s left faction has called for the "super-ministry" to be dismantled, but Shorten says it will be retained unless security agencies recommend changes to its structure. Shorten adds that Labor will not unwind the policies of the current federal government simply because they were Liberal initiatives.

CORPORATES
AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA

Shorten defies Left on security

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Original article by Simon Benson
The Australian – Page: 1 & 2 : 2-Oct-18

It is understood that Opposition Leader Bill Shorten will commit to keeping the Department of Home Affairs intact if Labor wins the next federal election. This is despite members of the party’s left and some unions wanting to see it dismantled. Shorten’s plan takes away a potential weapon from the federal government, which could have used any promise that Labor would break up Home Affairs as an opportunity to criticise it for being "soft" on border control and national security.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, MARITIME UNION OF AUSTRALIA, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Tax Office hunts for undeclared income

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 19-Sep-18

The Australian Taxation Office will use data-matching technology to recoup up to $1.4bn in unpaid taxes from foreign income and cash payments. As part of the crackdown, the ATO will increase its co-operation with around 100 foreign tax agencies, with data from Austrac showing that the US, the UK, New Zealand and China are among the leading countries from which Australians receive undeclared foreign income. The ATO’s assistant commissioner Kath Anderson says there is also a growing trend for taxpayers to fail to declare income from sources such as cryptocurrency trading and gig economy earnings.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Tax over-claimers gouge $8.7bn

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Original article by Rachel Baxendale
The Australian – Page: 2 : 12-Jul-18

The Australian Taxation Office will seek to recover more than $A1bn worth of tax liabilities over the next four years, according to second commissioner Neil Olesen. Analysis shows that the Federal Government lost $8.7bn in tax revenue in 2014-15 as a result of individuals failing to comply with their tax obligations. In contrast, it is estimated that forgone tax revenue from companies was just $2.5bn.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE TAX INSTITUTE, CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND