TAXATION – GOVERNMENT POLICY – AUSTRALIA

$200b ‘Google tax’ could snare innocent businesses

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Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 4 : 18-Jan-17

Chartered Accountants Australia & New Zealand has warned that the Federal Government’s Diverted Profits Tax will deter investment in Australia, while discouraging local multinational companies from pursuing overseas expansion. Greenwoods & Herbert Smith Freehills has expressed concern about the scope of the draft legislation compared with the British version of the tax. The tax, which aims to combat profit-shifting by multinationals, is forecast to raise about $A200m over four years and is slated to take effect from mid-2017.

CORPORATES
CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND, GREENWOODS AND HERBERT SMITH FREEHILLS PTY LTD, CORPORATE TAX ASSOCIATION, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Targeted tax strike on digital economy

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Original article by David Crowe, David Uren
The Australian – Page: 1 & 2 : 11-Jan-17

The Australian Government plans to overhaul the tax system in response to the transition from a cash-based economy to digital payments. Treasurer Scott Morrison has stressed the need to ensure that the nation’s tax base is modern as well as comprehensive and reflects the shift to a digital economy. The Government also intends to crack down on the so-called "black economy", while 2017 will also see the broadening of the GST to include online purchases and new measures to counter profit-shifting by multinationals.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, GOOGLE INCORPORATED, NETFLIX INCORPORATED, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF HUMAN SERVICES. CENTRELINK, CSIRO

All options open in PRRT review

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Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 7 : 5-Jan-17

The review of the petroleum resource rent tax (PRRT), led by former Treasury official Michael Callaghan, will be dispassionate, analytical and objective. Callaghan stressed these qualities of the review in an interview given on 4 January 2017. Treasurer Scott Morrison announced the review in November 2016. Its objective is to find out why PRRT receipts declined from a peak of $A2.5 billion in 2000 to about $A900 million a year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, INTERNATIONAL TRANSPORT WORKERS’ FEDERATION

Tax take smashed and getting worse

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 20-Dec-16

The Mid-Year Economic and Fiscal Outlook, released by Federal Treasurer Scott Morrison on 19 December 2016, shows that government revenue will be $A30 billion lower than forecast in the May 2016 budget. A positive effect of higher commodity prices will not be strong enough to compensate for lower tax revenue resulting from weak wages growth and lower than projected corporate tax collection in non-mining sectors.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

US, Britain building pressure to slash company taxes, expert says

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 9-Dec-16

The Australian Government may be under pressure to lower corporate taxes if the US and the UK reduce their tax rates to 15 per cent and other countries follow their example. Wolfgang Schoen, the director of the Max Planck Institute, says the world is entering a period of intense tax competition and attractive incentives will have to be offered to companies to attract their investment.

CORPORATES
MAX PLANCK INSTITUTE, AUSTRALIAN NATIONAL UNIVERSITY, PRICEWATERHOUSECOOPERS, AUSTRALIA. DEPT OF THE TREASURY

Resources rent tax will face a ‘sober’ review

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Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Resources rent tax will face a ‘sober’ review

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Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Trump tax cuts must be matched

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Original article by Jacob Greber, Phillip Coorey, Misa Han
The Australian Financial Review – Page: 1 & 6 : 17-Nov-16

Federal Treasurer Scott Morrison says official data showing that annual wages growth fell below two per cent in the September 2016 quarter demonstrates the need for company tax reform. He adds that Australia will become less competitive if it does not cut the tax rate and US president-elect Donald Trump reduces company taxes to 15 per cent. Business Council of Australia CEO Jennifer Westacott will also highlight the need for corporate tax reform at the organisation’s annual dinner on 17 November.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUREAU OF STATISTICS, LIBERAL DEMOCRATIC PARTY, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, RESERVE BANK OF AUSTRALIA

ScoMo takes tax fight to Xenophon

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Original article by Phillip Coorey, Simon Evans
The Australian Financial Review – Page: 1 & 4 : 26-Oct-16

The Australian Government will continue to push for the company tax rate for businesses with turnover of up to $A50m to be reduced to 27.5 per cent. The Government requires the support of the Nick Xenophon Team’s three senators, although the party wants the turnover threshold to be capped at $A10m. Treasurer Scott Morrison will attend a series of meetings and functions with representatives of medium-sized businesses in Senator Nick Xenophon’s home state of South Australia, as part of the Government’s push to gain support for its scaled-back corporate tax reform package.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, ONE NATION PARTY, COMMITTEE FOR ADELAIDE, SAGE AUTOMATION LIMITED, BHP BILLITON LIMITED – ASX BHP, GLENCORE AUSTRALIA PTY LTD, GM HOLDEN LIMITED, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, HAIGH’S CHOCOLATES, KORVEST LIMITED – ASX KOV, CODAN LIMITED – ASX CDA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

NXT nixes big business tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 7 : 19-Oct-16

The Nick Xenophon Team’s three senators will vote against the Federal Government’s $A48bn package to progressively reduce the company tax rate to 25 per cent over 10 years. The Government requires the support of at least nine of the 11 crossbenchers for its proposal to reduce the tax rate for all companies with turnover of at least $A10m, as the Opposition only favours a tax cut for companies whose turnover is no more than $A2m. Business groups have called for the implementation of the full tax reform package.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, ESSENTIAL MEDIA COMMUNICATIONS PTY LTD