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Overseas Companies and Taxation
- Thread starter Michael
- Start date
It's a good point, but why restrict it to overseas companies?
For many years I've believed that everyone - business and people - should be taxed on the $'s going in (or out) of their bank accounts.
Scrap personal income tax and company tax.
The reason this has never been seriously considered in the past is the "cash economy". But to a large extent this has been removed as most people/businesses nowadays transact electronically.
BTW - Pauline Hanson wanted a similar system.
For many years I've believed that everyone - business and people - should be taxed on the $'s going in (or out) of their bank accounts.
Scrap personal income tax and company tax.
The reason this has never been seriously considered in the past is the "cash economy". But to a large extent this has been removed as most people/businesses nowadays transact electronically.
BTW - Pauline Hanson wanted a similar system.
I have always been a great believer that if we lowered tax rate on foreign companies we would actually collect more tax. The reason income shifting is done is because companies shift profits to lower tax regimes through things like royalty payments, transfer pricing, thin capitalisation ( low capital and high borrowings) and the like. I know this because I have done it !!
Take the incentive away for companies to make profits elsewhere by reducing the corporate tax rate, reduce company tax and personal income tax to meet that reduction and move more of the tax burden to indirect and consumption taxes. The lower income earners can get compensated in other ways.
Singapore has low personal and company tax rates but it's massively expensive there to own and drive a car as an example. I haven't studied it in the last 10 years or so but the last time I saw numbers our overall tax burden wasn't that high by OECD standards but is skewed to income and company taxes far more than most.
Take the incentive away for companies to make profits elsewhere by reducing the corporate tax rate, reduce company tax and personal income tax to meet that reduction and move more of the tax burden to indirect and consumption taxes. The lower income earners can get compensated in other ways.
Singapore has low personal and company tax rates but it's massively expensive there to own and drive a car as an example. I haven't studied it in the last 10 years or so but the last time I saw numbers our overall tax burden wasn't that high by OECD standards but is skewed to income and company taxes far more than most.
Rather than tax the profits of companies operating in Australia, why don't we try not taxing them at all?
Other ideas regarding tax that should be looked at for mine are:
Tax should be on household income. A couple with one earning $100,000 and the other earning $20,000 should be taxed at $60,000 each. If I ran a business I could do this.
Trust's should be phased out. Keep it to company, partnership, sole trader. Too many cases of the wealthy just paying the best accountants thousands $ to avoid many thousands $ more of tax.
Tax should be on household income. A couple with one earning $100,000 and the other earning $20,000 should be taxed at $60,000 each. If I ran a business I could do this.
Trust's should be phased out. Keep it to company, partnership, sole trader. Too many cases of the wealthy just paying the best accountants thousands $ to avoid many thousands $ more of tax.
We already have a tax on revenue that applies to both local and overseas companies its called the "GST"!!!!!!!!!!!!!!!
In many respects raising the GST would go a long way towards overcoming the concerns people have about companies such as Apple having high revenue in Australia but for structural reasons having low taxable income here.
Good luck with raising the GST though as even though it would go a long way to overcoming the problem the fear campaign would stop it dead in its tracks.
Everybody wants governments services the problem is that they all want everybody else to pay for them!!!!
In many respects raising the GST would go a long way towards overcoming the concerns people have about companies such as Apple having high revenue in Australia but for structural reasons having low taxable income here.
Good luck with raising the GST though as even though it would go a long way to overcoming the problem the fear campaign would stop it dead in its tracks.
Everybody wants governments services the problem is that they all want everybody else to pay for them!!!!
I don't understand your point Antman. Yes it is a tax on consumption as everything you buy us consumed in one way or the other. But the amount you pay becomes the revenue of the person or company you buy it from.
Accordingly on one side (the buyer) it is a tax on consumption. On the other side (the seller) it is a tax on revenue.
Happy for you to explain the distinction but think it depends upon which side of the transaction you are looking at it from.
Accordingly on one side (the buyer) it is a tax on consumption. On the other side (the seller) it is a tax on revenue.
Happy for you to explain the distinction but think it depends upon which side of the transaction you are looking at it from.
Just getting some of the overseas companies to pay some tax would be nice.
I don't know why governments have allowed Uber to operate.
Uber takes 25% of each fare from their drivers, that money goes offshore. I don't what benefit that is to the Australian economy. With water, gas, electricity etc all going up. I would have though that Australia needs all the revenue that it can get.
And then their is the alleged rort where some Australian based Uber drivers are get paid into overseas bank accounts. They wouldn't be paying much income tax would they.
I don't know why governments have allowed Uber to operate.
Uber takes 25% of each fare from their drivers, that money goes offshore. I don't what benefit that is to the Australian economy. With water, gas, electricity etc all going up. I would have though that Australia needs all the revenue that it can get.
And then their is the alleged rort where some Australian based Uber drivers are get paid into overseas bank accounts. They wouldn't be paying much income tax would they.
Gee whiz, cheap taxi fares for consumers, what could possibly be the benefit??? What we need is more expensive taxi fares, a boon for prosperity!tigerman said:
When you say the "Australian economy", what are you actually talking about if not consumers?tigerman said:
Giardiasis said:
If a percentage of each Uber fare equating to millions of dollars is going off shore i cant see how that is of benefit to the Australian economy. If consumers are catching trains, trams, buses and taxis and those businesses and employees are paying taxes surely that is good for the Australian economy.
You still haven't answered the question. if you want to propose that foreign investment is bad for the Australian economy, you need to be able to qualify who you are talking about. Who is it bad for? There is no such thing as Australia, only individuals that live in Australia.tigerman said:
