Commissioner of Taxation Chris Jordan has compared tax avoiders to drug cheats, with his comments coming after the ATO and Rio Tinto reached a $1 billion settlement last week.
Jordan says the ‘model’ that resource companies have been using to avoid tax has been broken by the ATO, resulting in savings to taxpayers of around $12 billion. he also says that getting multinationals to change their behaviour in terms of their tax affairs is far preferable to the ATO having to do constant audits of them.
From The AFR:
There are 756 words left in this subscriber-only article.
Get your first month for $1
“Resources companies have started paying tax,” [Jordan] said.
“We collectively eliminated more than $30 billion of their losses applying the Chevron decision, so they are paying tax a lot earlier.”
He said the consequent saving to the taxpayer was around $12 billion…
Last week, a long-running dispute between Rio Tinto and the ATO ended when the nation’s largest iron ore miner agreed to pay an additional $613 million in tax for the period from 2010 to 2021, on top of $378 million paid last year.
It follows a $529 million settlement with BHP in 2018, both of which involved the ATO taking issue with the way the mining giants used Singapore-based marketing hubs to sell their product to reduce their tax.
This is obviously great news for taxpayers. Now the Albanese Government should implement export levies or super profits taxes on the foreign-owned entities exporting our gas for war profits, while we pay European prices.
Only then will Australians receive a fair return on our resources.
Sadly, Albo’s cowards have no interest in looking after Australians.
- Weekend Reading: 13-14 August 2022 - August 13, 2022
- Soaring interest rates trap Aussies in ‘mortgage prison’ - August 12, 2022
- FWO launches action against university wage thieves - August 12, 2022