Labor tax breaks not enough

Original article by John Kehoe
The Australian Financial Review – Page: 8 : 18-Mar-19

Canadian economist Jack Mintz has produced a report on behalf of the Minerals Council of Australia. He concludes that reducing the company tax rate from 30 per cent to 25 per cent would do more to ensure that the nation remains internationally competitive than Labor’s proposal to provide businesses with a 20 per cent tax write-off for capital expenditure exceeding $20,000. The report also argues that the manufacturing sector would gain more benefit from Labor’s policy than industries such as mining.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Tax law loss delivers $82m hit to BHP

Original article by Ben Butler
The Australian – Page: 19 : 30-Jan-19

The full Federal Court has overturned the Administrative Appeals Tribunal’s ruling that BHP and its London-listed arm are not associates for tax purposes. The case centred on the Australian Taxation Office’s dispute with BHP over its controversial marketing hub in Singapore. The ATO had alleged that BHP’s dual-listing agreement meant that its Australian division had to pay tax on the British arm’s profits under rules governing controlled foreign corporations.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, FEDERAL COURT OF AUSTRALIA, HUNTER VALLEY COAL CORPORATION

Punishing company tax regime on par with Third World

Original article by David Uren, Chris Griffith
The Australian – Page: 1 & 2 : 16-Jan-19

A new report from the OECD shows that France is the only developed nation with a higher company tax rate than Australia at present. However, the French government intends to reduce its corporate tax rate to 28 per cent, while the Coalition’s tax reform policy has been stalled in the Senate. The OECD report also notes that Costa Rica and Chile are the only countries in the world that have a higher tax rate on new business investment than Australia.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, KPMG AUSTRALIA PTY LTD, CURIOUS THINGS, MURU MUSIC

Miners drive corporate profit surge

Original article by Matthew Cranston
The Australian Financial Review – Page: 5 : 18-Dec-18

The federal government expects total revenue for 2018-19 to be $8.3bn higher than forecast in the May 2018 Budget, and $12.4bn higher over the forward estimates period. The revenue windfall has been driven by rising corporate profits, particularly in the mining sector as a result of higher commodity prices. Corporate tax revenue is expected to be about $495bn in 2018-19, compared with $460bn in 2017-18. However, economists say a sustained increase in company tax receipts cannot be taken for granted.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AMP CAPITAL INVESTORS LIMITED

Crackdown delivers tax windfall

Original article by Ben Butler
The Australian – Page: 19 & 22 : 14-Dec-18

Woodside Petroleum and Roy Hill Holdings are among 722 large companies that did not pay any tax in 2016-17. Large corporations paid a combined total of $45.7bn in taxes during the financial year, compared with $38.2bn previously. The Commonwealth Bank and BHP paid the most tax, at $3.9bn and $3.27bn respectively. The federal government’s corporate tax revenue was bolstered by factors such as a rise in commodity prices and the impact of its Multinational Anti-Avoidance Law, which has targeted global technology companies in particular.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROY HILL HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP GROUP LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, HANCOCK PROSPECTING PTY LTD, BAE SYSTEMS AUSTRALIA LIMITED, ROCKPOOL DINING GROUP, TAX JUSTICE NETWORK, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, GOOGLE AUSTRALIA PTY LTD, FACEBOOK AUSTRALIA PTY LTD

Tax cash flow instead of profit, say economists

Original article by Ben Potter
The Australian Financial Review – Page: 8 : 10-Dec-18

Leading economists Ross Garnaut and Craig Emerson have proposed a major overhaul of the corporate tax system. They have proposed taxing a company’s cash flow rather than its profits, arguing amongst other things that this would result in increased tax revenue at a lower rate and result in a more level playing field between small companies and multinationals. They add that it would also result in increased investment and reduce the incidence of tax avoidance via profit-shifting.

CORPORATES
APPLE INCORPORATED, CHEVRON CORPORATION, BHP GROUP LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF MELBOURNE, VICTORIA UNIVERSITY, LONDON SCHOOL OF ECONOMICS, INDUSTRY SUPER AUSTRALIA PTY LTD

Rinehart claims she sits top of nation’s tax table

Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 2-Nov-18

The annual report of Gina Rinehart’s Hancock Prospecting shows that its profit rose by 28 per cent to $1.37m in 2017-18, with revenue from its Roy Hill iron ore project rising from $4.45bn to more than $6bn. Hancock paid $860 million in federal and state taxes during 2017-18, compared with $698m in the previous financial year, and it has paid $5 billion in taxes over the last eight years. Rinehart has issued a statement claiming that she pays more tax than any other Australian.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN OUTBACK BEEF, S KIDMAN AND COMPANY PTY LTD, SIRIUS MINERALS PLC, RIVERSDALE RESOURCES LIMITED, RIO TINTO LIMITED – ASX RIO, WRIGHT PROSPECTING PTY LTD, SUPREME COURT OF WESTERN AUSTRALIA, FEDERAL COURT OF AUSTRALIA

Miners fear tax grab by Labor government

Original article by Peter Ker
The Australian Financial Review – Page: 20 : 1-Nov-18

Gold Fields CEO Nick Holland has warned that the South Africa-based miner may reconsider future investment in Australia if a change of federal government results in an increase in the sector’s royalties and taxes. Gold Fields has a 50 per cent stake in the Gruyere gold project in Western Australia, while its other local assets include the St Ives, Granny Smith and Darlot gold mines. Meanwhile, Fortescue Metals Group CEO says mining companies need policy certainty to continue investing in Australia rather than offshore.

CORPORATES
GOLD FIELDS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLD ROAD RESOURCES LIMITED – ASX GOR

PM’s $3.6b corporate tax cuts

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 5-Sep-18

The federal government recently announced its intention to bring forward previously legislated tax cuts for small and medium businesses with turnover of $50 million or less. The government’s preferred option for companies in this category is for their tax rate to drop to 25 per cent by 2021-22. Internal Treasury papers indicate that this option would cost the budget $3.6 billion over the four-year, forward estimates period. It would allow the government to achieve its self-imposed plan that tax revenue not exceed 23.9 per cent of GDP by 2020-21, a year earlier than intended.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Small business tax cuts miss the point

Original article by Ronald Mizen
The Australian Financial Review – Page: 7 : 30-Aug-18

Prime Minister Scott Morrison recently signalled that the small and medium business sector will be the focus of his government’s company tax policy. However, Jeremy Thorpe of PricewaterhouseCoopers argues that tax cuts for the small business sector should not be a priority as such businesses generally do not need to be globally competitive. Grant Wardell-Johnson of KPMG agrees, noting that large companies deliver the great economic benefit from tax cuts.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, KPMG AUSTRALIA PTY LTD, ERNST AND YOUNG, AUSTRALIAN LABOR PARTY