Saturday, February 28, 2015
Elephants of Tax Analogies
“Old poets regurgitate
Pellets of chewed-up paper
Packed with shrew tails, frog bones,Beetle wings, wisdom.”
~ Snow Water... the tax office has begun to acknowledge the presence of the elephant in the room that is the billions lost to the nation's budget by multinational profit shifting. Albeit, they are still patting this elephant rather than proactively shooing it out of the room.
The very funding of our hospitals and schools is at stake here, our children's future, but the committee's modus operandi was more of a fireside chat than a grilling. It was apparently a matter for pride for the ATO that only one suspect was left on its "high-risk" list of corporate taxpayers (from 14 earlier). Westfield enshrines another challenge to revenue. It has restructured and shifted its tax base offshore and pays no tax here. Besides its $US2.3 billion in related party loans, loans to itself offshore that is, it lumped in income tax in the same line in the cash-flow statement as withholding tax, in apparent contravention to AASB107. Profitshifting tax office settles for-patting the elephant in the room