Showing posts with label ato. Show all posts
Showing posts with label ato. Show all posts

Inquiry Into Tax Dodge by Tech Giants is a Lie Fest

It amazes me how people can blatantly lie, and continue to lie, when everyone else knows the truth. There is a Senate inquiry in Australia into big companies, mainly tech giants, avoiding tax that is owed to this country. Mr King, the head of Apple Australia strongly denies that the company is reducing its tax payments through questionable methods. Fair "crack in the door mate" we all know what is really going on. Is Ireland involved in these methods?
Tony King head of Apple Australia
Apple and Google are the major companies targeted by the inquiry. Britain is planning to regulate to make them pay what is due there. Other countries are watching to see what Britain does. Of course, the easiest way to get money out of the tech megaliths is to introduce a revenue tax irrespective of profit, because it is profit that is being skimmed off subsidiaries by head office for non-existent services.

The Australian Tax Office wants its pound of flesh from internationals as it does from locals. Last year Apple paid $80m in tax from profit of $250m. Revenue was $6 billion. While this is a tax rate of 32 per cent, the profit margin of only 4.17 percent is highly suspect. Apple charges a fixed rate of 30 per cent on all app revenue in its App Store. Furthermore, it has huge income from sales of its own merchandise for which the profit margin is not widely known.

Mr King said that Apple would willingly enter into an agreement with the ATO. By saying this he clearly believes that he can choose not to follow Australian law. Apple's tax rate of 32 per cent seems reasonable at first glance when compared to Google Australia's rate of 15 percent. However, Google's profit margin of 13 per cent is more realistic.

Lastly, Mr King of Apple said that Australian app developers had made a fortune out of new apps.  He fails to mention the gargantuan amount made by Apple from these.  The guaranteed 30 per cent on all downloads is a money grab by any definition considering Apple has set this rate itself and it can easily raise it at any time, even for apps already available.
Technology by Ty Buchanan
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Bitcoin is an Asset According to the Australian Tax Office

Everyone thought that bitcoins would remain untraceable and out of the reach of national revenue collections. This belief has proved to be fairyland. The Australian Tax Office now values bitcoins as assets to be included on your yearly income tax form.

If you have millions of these things when there value increases you will have to give part of it to the Australian Tax Office (ATO) if you reside in Australia. Don't think that this is the end - it is just the beginning. Other countries are looking at making bitcoins taxable income.

BitPos an Australian company which arranges an exchange and purchasing service for people dealing in bitcoins say owners have to pay the Goods and Service Tax (GST) on the full value of coins not just on the fee. This is when buying the actual "currency" itself.

Because dealers say bitcoin it is not a currency it opens the door for countries to interpret it as they like. It is possible some jurisdictions will class it as currency and capital investment. Indeed, some countries could make bitcoins illegal. This would throw a spanner in the works.

The ATO has issued a warning to businesses that purchases of goods and services with bitcoins must be recorded in the books and the government is planning to collect GST on it. Essentially, the currency is going to be taxed twice. Banks praise this because bitcoin is a treat to them.

Businesses do not know whether it is legal to charge the GST at the moment.  It could be levied on them when they have not collected it from customers.  This is a gray legal area at present.  Charging for GST when it not yet payable could be classed as price gouging, a trick to charge more.
Economics by Ty Buchanan
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