# Tax on Google, Facebook and Uber to go ahead



## Hugh G (Sep 22, 2016)

7:05am May 21, 2018
https://www.9news.com.au/national/2...-facebook-uber-tax-on-tech-giants-to-go-ahead
Crossbench senators would support the federal government's $176 billion tax plan in exchange for a tax on digital companies such as Google, Facebook and Uber.

The coalition needs two more votes to get its plan to cut income tax for low-and-middle income workers, and lower corporate taxes, passed by parliament.

Centre Alliance senators Stirling Griff and Rex Patrick are "100 percent behind a digital economy tax proposal", Fairfax Media reports

If the digital economy tax makes the government coffers swell more than they do now, that is very much a positive step," Senator Griff said.

"As long as there are no cuts to core community services, we'd be receptive to a degree of tax relief for everybody. A lot could happen in six weeks; maybe the company and income taxes can be done by July."

The government is trying to get a $140 billion income tax cut plan, as well as a $35.6 billion bid to lower the corporate tax rate for big businesses, through parliament.

The package, a key plank of the federal budget, is due for debate in House of Representatives tomorrow.

Labor supports the first part of the tax cut plan, which starts with a reduction of up to $530 a year under a low and middle-income tax offset.

If it wins the next federal election, Labor has promised almost doubling this offset to over $900.

But it won't back the Turnbull government's second and third steps, which make changes to certain tax brackets at various stages, until at least the government provides more information on their cost.

The budget papers show the plan will cost $13.4 billion over the first four years, but Treasurer Scott Morrison has repeatedly declined to break it down year-by-year beyond that other than to say it will amount to $140 billion over 10 years.

Mr Morrison is also adamant he won't split the package to ensure its passage in the Senate, where the government doesn't have a majority.

Greens leader Ricard Di Natale believes tax cuts are a "bribe" by the government to gain support for the remainder of its company tax cuts, which are stuck in the Senate.

He says the priority should be greater investment in public services.

"For years, politicians have been telling Australians that the budget doesn't have money to properly fund our public schools, build a world-class NBN, or take action on climate change," Senator Di Natale told AAP.

"Yet when an election is rolling around both old parties are giving away cheques like a breakfast TV show trying to increase their ratings."

But the Greens won't have a bar of any income tax cuts, from either of the major parties.


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## mistareno (Nov 9, 2017)

Good. There are so many companies that legally avoid paying Tax in this country, that it begs the question, why don't the government actually close the loop holes.

Ikea Furniture is a prime example. They have been paying SFA Tax in Australia for decades, despite massive growth in turnover.

They do this of course, by splitting the Supply and Retail arms of the group into separate entities.

The Retail entity runs all the stores in various countries and pays Tax on their 'profit.

The Supply entity is based in a Tax Haven and artificially inflates the prices (to varying degrees depending on country/market) and sells the goods to the Retail entity at a price just low enough for the retail entity to still turn a profit.

The Retail entity pays Tax on the mediocre profit they make and the hidden profit goes back to the Supply Entity, and no Tax is ever payed locally on that amount.

If they want to build a new store, the Retail entity loans money from the Supply entity and the 'repayments' reduce the Tax they pay even more...

https://www.smh.com.au/business/com...ofits-are-mostly-taxfree-20141106-11hlut.html


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