Chalmers’ tax reform must tackle corporate tax evasion

Treasurer Jim Chalmers talks about tax reform and the public debate was delayed. A key component should be to stop escaping corporate tax. Rex Patrick He puts forward a way to handle it.

When the Treasury Secretary Ken Henry gave his 2009 report to the future tax system of Australia, Treasurer Wayne Swan, one of the people who will work in detail, was Swan’s Deputy Chief of General Staff Jim Chalmers.

‘Henry Review‘The recommended bold changes. In summary, it was recommended to remove a wide variety of taxes for simplicity and to remain only four solid and efficient taxes:

• Personal income tax, which is evaluated on a more comprehensive basis
• Designed to support economic growth, Business Income Tax
• Natural resources and land rents and
• Special Consumption Tax (GST).

Many taxes and taxes go completely; Medicare tax, payroll tax and land taxes; These taxes will be merged to four. Yes, there would still be complexity, but less.

Business Income Tax Not Working

The focal point of this article is business income; To pay the fair shares of the enterprises for the society, to educate the labor forces, to keep the labor healthy, to keep the laws and order in and around the factories, to provide a system of justice and ultimately national security that protects their existence.

The problem is that they don’t. MWM For a long time, he has been following readers how many companies operating in Australia are here, regardless of their social obligations.

Corporate tax avoidance. Who helps Australia and who does not give?

I was always confused as a senator in the 45th and 4th parliaments when the liberal party ministers made me lobbying to support lower corporate tax rates. The tax transparency data published by the Tax Office every year shows very little relationship between the revenues produced by companies and the taxes they pay.

Companies are taxed at a marginal proportion of 25% marginal (for companies with less than $ 50 million) and 30% (for companies with more turnover).

However, it is not important that the rate is 30%, 25%, 15%or 10%. Expensive company accountants can ‘improve’ books to reduce the profit to zero in a way that is not paid.

Digital tax

For this reason, many countries go to digital tax for major data companies that use billions of data that use to pay expensive ‘marketing’ or ‘intellectual property’ fees to the relevant organizations that last billions of billions.

This happens in Australia and also reported at the same time MWM A long time.

California Tales: To Google, Facebook and Netflix to the Australian Tax Office

Other countries apply a digital tax between 3% and 5% of income in large digital players. However, it doesn’t matter how good it is to help large accounting consultant firms to rob their revenue governments on digital platforms (also provides services to the same governments for a king’s ransom).

Fixed tax rate

While watching this as a senator, I asked the Parliament Budget Office (PBO) to conduct a secret analysis of what would happen to the Australian government income if a fixed tax is adopted in the income plan.

I haven’t published the analysis (so far) because nobody talked about tax changes much. But now we.

As a starting point, I asked PBO (then) to calculate the average tax income for the last three financial years. They calculated the numbers as follows.

Income tax %

Over the years, the average tax percentage percentage was less than 3%. Some beings were clearly paying more than this (protect their souls) and others did not pay any of them.

The basic package obtained from Pbo analysis is that a 3% tax / income ratio is about the correct number.

I also asked the Pbo to tell me what would happen if the tax-incident rate was raised to various other percentages. The 3.5 % answer was as follows.

Income tax may be a great logical that is laid down according to the collective turnover -based dimension.

• Micro Businesses (less than 2 million dollars) -2.4%
• Small businesses through small ($ 2 million to $ 50 million) -2.7%
• Large and very large businesses ($ 50 million to $ 250 million) – 3.0 %

Watch out for the accountant

Although it is true that the Economic Cooperation and Development Organization (OECD) has made internationally progress in order to ensure the payment of tax on the basic erosion and profit shift (BEPS 2.0), it is still looking for great accounting companies and recommends how to avoid paying taxes.

Company managers do not owe their duties to the public; They owe this to their shareholders. They are personally motivated by the financial reward to minimize how much of a company’s money into the government’s chests. Although there is a return on investment in bringing lawyers and accountants to the chambers of the Board of Directors to minimize the tax, they will do so.

For this reason, Ken Henry explained the need to be simple and solid. They need to be without gaps. Income tax is a simple and solid solution. Some winners (will pay less taxes) and some losers (will have to pay one or more or more), but the issue is that everyone will have to contribute to consistent lines; everyone.

And this generally points to another goal for our tax system; It must be fair.

Big Four accountants and 480 billion dollars of global tax smuggling industry