More Clever Accounting ??

[RodH]

From the ABC News website;

Qantas posts $607 million first-half profit
Updated 16 minutes ago

MAP: Australia
Qantas has posted a net profit of $607 million, for the six-month period ended December 2017.

This result is higher than its first-half profit of $515 million from the previous year.

Qantas disclosed an income tax expense of $250 million, but will not pay tax due to the "utilisation of of carry-forward tax losses and other temporary differences", according to its interim financial report, released this morning.

The Australian airline also announced it will buy back $378 million worth of its shares.

"Today’s result comes from investing in areas that provide margin growth and a network strategy that makes sure we have the right aircraft on the right route," chief executive Alan Joyce said.

As for its interim dividend, the company will pay shareholders 7 cents per shares, unfranked.

More to come.

Good to see they will pay some tax ---NOT. Can't pay tax and pay the CEO huge salaries as well can we ?

[Lancelot37]

Don't accountants usually ask " What do you want me to do - show a profit of a loss? Then adjust the figures accordingly.

[Chris2303]

Isn't all accounting "creative"?

[gchriste]

You know every company in Australia does this right? Not sure it is something I would be bashing Q for. You make a tax loss you carry it forward.

[Lancelot37]

You know every company in Australia does this right? Not sure it is something I would be bashing Q for. You make a tax loss you carry it forward.

Who's bashing Q? Look at what happened at Tesco. They made extra millions on the books, but after investigation the Directors, allegedly, included expected profits for the following year into the current year accounts to make them look good. They are due in Court shortly.

[tail wheel]

Who didn't pay tax?

At least 700 mostly public companies didn't pay a cent!!

The ATO just dropped corporate tax data and more than 700 companies paid nothing - ABC News (Australian Broadcasting Corporation) (http://www.abc.net.au/news/2017-12-07/corporate-tax-data-released-by-ato/9236878)

Companies don't pay tax for moral reasons. Obviously Australia's tax laws are pathetically inadequate to enable 732 companies to legally and legitimately pay no tax in Australia in the 2015-16 financial year, despite their collective income exceeding $500 billion.

[TBM-Legend]

It's not right to say they pay no tax. QF employs 20-30,000 people who pax. They collect billions in GST, their suppliers and contractors pay tax. The system allows for the carry forward of losses and these are used against profits. Shareholders pax tax. Airports, fuel companies and on it goes pay taxes...

What are we talking about?

[On eyre]

Tail Wheel I know you do realise that companies pay tax on profits not income - no profit no tax and previous losses can be offset. Just saying. Same trap that Emma Alberici ABC fell into who should have known better.

Now reducing Oz profits by transferring offshore is a different kettle of stinking fish which is hopefully being dealt with now.

[desertduck]

Easy tax solution - Govt takes 5 or ten cents per dollar for every transaction.

[Capn Bloggs]

Easy tax solution - Govt takes 5 or ten cents per dollar for every transaction.
That'd be a GST wouldn't it? :)

[B772]

Nice to see insider trading is alive and well. Huge trading in QF shares on 20 Feb. Just shy of 25M shares changed hands at an average price of about $5.29

[tail wheel]

Please learn to differentiate between companies collecting tax from third parties (PAYG, GST, ticket taxes etc) on behalf of the ATO and companies that pay tax on their own earnings.

One wonders why so many local subsidiaries of overseas companies continue to operate in Australia and pay no tax, presumably due to repetitious losses? :E

The ATO will never stop transfer pricing. One solution may be to impose a turn over tax on foreign entities and their local subsidiaries and affiliates who would pay a 1% turn over tax if "losses" result in non payment of Company Tax.

[TBM-Legend]

That line is factually incorrect. I pay that tax to the government not Qantas!

as my teacher once said - "read the question!".

I did not say that employees pay tax to Qantas. I was in fact pointing out that as a large employer Qantas generates tax to the government by employing lots of folks. As has rightly been said elsewhere company tax is paid only on profits. No profit or losses then no tax. Don't forget the massive payroll tax QF generates. some 4% of the payroll and so it goes on. I'm amazed at the ignorance of some..

[neville_nobody]

Employees can also have massive deductions whereby the employer and the employee pay very little if any tax at all. Sydney Airport is another good example of this scenario.

There is a reason some countries have flat tax rate / no deductions tax regimes.