Credit to: Tax Avoidance News
: Big business avoids tax, yet wants to lower rate
One in five corporations with annual profits greater than $100 million paid no tax last year, the Australian Tax Office has revealed.
Michael Cranston, one of the ATO?s deputy commissioners, revealed the figure to a Senate hearing into corporate tax avoidance.
Corporations avoid paying tax by what is euphemistically called profit-shifting. Basically, they move profits overseas to tax havens in places like Singapore, Switzerland, Ireland or Vanuatu. An ATO report last year found that, in 2011-12, more than $60 billion was moved to tax havens.
An Australian Financial Review investigation last year found that Google alone shifted ?an estimated $8.9 billion in untaxed profits from its Australian operations to a tax haven structure in Ireland in the last decade?.
We get the claim same in the U.S. all the time.
It may be strictly true but leaves out the following
1) the company pays employees who pay tax
2) the company pays an equal share of FICA taxes as the employee
3) there's no way to get the money out of the company and to the individual with the paying taxes on it
4) companies buy goods and services who are then used by other companies to hire people and pay taxes etc.
Therefore it's somewhat disingenuous in that they enable taxes to be paid plus eventually all profits out of the corporation run the same tax,requirements when they hit the individual
I really would rather see a small fixed rate with no deduction for individuals and corps, and a minimal government. The progressive rate system with deductions gets the oppressed arguing amongst themselves rather than against the taxman and government where the problem originates.