PPRuNe Forums - View Single Post - War in Australia (any Oz Politics): the Original
Old 1st Apr 2015, 03:32
  #16889 (permalink)  
RJM
 
Join Date: Jul 2005
Location: Orstralia
Posts: 295
Don't believe everything you read in the Age:

The Age claims the 900 biggest companies are paying an effective tax rate of 19.3%, “costing” the government $25b in “lost tax” when compared with the 30% corporate tax rate.

What a scandal....but then read on.

Oh, the 900 top companies include loss making companies that do not pay tax, raising the effective tax rate to 21% when they are excluded.

And then it is disclosed the top 900 include super funds that pay 15% tax, and other company structures that pass on tax liabilities to the shareholder (ie they pay zero tax).

But there is no disclosure what the effective tax rate is once the super funds and other zero-tax entities are excluded. It's probably closer to 27%. At this level, the imaginary $25b of “lost tax" from those cheating corporates evaporates to almost zero.
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