*As for franking credits; in the long term the current regime is untenable.
*It entrenches a subsidy from all taxpayers to share owners. Many of these depend on this income for retirement and those less wealthy retirees should be protected by a cap but clearly the likes of $250,000 hand-outs to the likes of Dick Smith are impossible to justify.
(Dick Smith highlighted this in the media)
Secrets and Lies: how franking credits stole the tax bonanza
‘Thanks to franking credits, the $52 billion in tax paid by Australia’s largest corporations is not actually received by the Tax Office.
Michael West reports on one number everybody seems to have missed.
For five years now, the Tax Office has issued its Corporate Tax Transparency Report which shows how much tax Australia’s largest companies pay, or don’t pay. The latest report was released earlier this month. The data showed the biggest companies operating in this country paid collectively $52.3 billion in 2017-2018.
Surely this was good news. Then why was nobody crowing about it? Well, almost nobody.
Upon releasing its report, the ATO’s Deputy Commissioner Rebecca Saint did note the “significant increase of $6.6 billion in tax payable” by large corporations.
But where were the eulogies from government ministers and peak business groups? Why the deafening silence? No press release from the office of Treasurer Josh Frydenberg, or from Finance Minister Mathias Cormann for that matter.
Nothing from powerful peak body the Business Council of Australia either. Even though the Tax Office press release said the rise in tax revenue was “primarily due to strong commodity prices”, there were no proud words from the mining lobby, the Minerals Council of Australia.
Perhaps it was because a slew of the world’s largest corporations were still paying zero income tax in Australia. ‘
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