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millionaires who pay next to no income tax

Discussion in 'Accounting & Tax' started by Terry_w, 22nd Mar, 2016.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Meet the 56 millionaires who pay next to no income tax

    Paying tax has become optional for 56 of Australia's highest earners. Newly-released tax statistics show each of the 56 paid next to no income tax in 2013–14, not even the Medicare Levy, even though each earned more than $1 million.

    But escaping tax cost the millionaires dearly. The same document shows 27 of the 56 claimed a combined $46.7 million for the "cost of managing tax affairs", around $1.7 million each.

    The Tax Office says "cost of managing tax affairs" includes the cost of preparing and lodging tax returns, the fees paid to recognised tax advisors, the cost of court appeals and interest charges imposed in relation to tax disputes.


    Read more: http://www.smh.com.au/federal-politics/political-news/tax-stats-meet-the-56-millionaires-who-pay-next-to-nothing-20160321-gnndna.html#ixzz43aEj0FTI
     
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  2. EN710

    EN710 Well-Known Member

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    Do you think it's all on paper only lost?

    I wouldn't call them millionaires if they make minus, regardless the gross turnover
     
  3. willair

    willair Well-Known Member Premium Member

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    That alone keeps a lot of people employed-"cost of managing tax affairs",also gives society's mistaken perception on the odds of getting caught..
     
  4. Xenia

    Xenia Adelaide Property Manager Business Member

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    wow
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    As long as done legally, I have no issue with it.
     
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  6. York

    York Finance Broker Business Member

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    That's the effect of prudent tax planning.
     
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  7. aussieshorter

    aussieshorter Well-Known Member

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    No sane person would pay more in tax than they legally have to.

    As long as it's legal, I have no complaints.
     
  8. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    www.investopedia.com/terms/d/double-irish-with-a-dutch-sandwich.asp
    Double irish with a dutch sandwich is also legal. Anything wrong with it ?
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Two ways to look at it:
    From the individual tax payer's perspective, no nothing is wrong becaue the tax payer has lawfully reduced their tax.

    From a macro economic point of view, yes there is something wrong because a tax payer is diverting funds out of the country.
     
  10. York

    York Finance Broker Business Member

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    "I'm not evading tax in any way shape or form. Of course I'm minimising my tax. If anybody in this country doesn't minimise their tax they want their head read. As a government I can tell you you're not spending it that well that we should be paying extra." - Kerry Packer
     
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  11. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    We celebrate this yet whinge about welfare recipients doing cash jobs.

    What a sad moral indictment.
     
  12. headsonbeds

    headsonbeds Well-Known Member

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    Bit ott Andrew! I didn't see wild celebrations :p

    56 people is such a small number. It's very easy for high net worth individuals to accrue losses etc in any 1 year period. These people may have paid large amounts of tax in the years around this - or not!

    The "cost of managing tax affairs" is a little bit freaky. I'd like to know a little more about that.
     
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  13. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    I do not know much about Kerry Packer.
    A quick google search shows that he built his wealth predominantly from facilitating gambling by building casinos. I do not understand his relevance here ?
    Please correct me if I am misinterpreting it, but are you suggesting that Australia(ns) should follow his tax philosophy or they should seek psychiatric help ?
     
  14. JohnPropChat

    JohnPropChat Well-Known Member

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    There is a fine line between tax minimization and tax evasion.
     
  15. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    The article explains why the High Wealth Taskforce exists.
     
  16. aussieshorter

    aussieshorter Well-Known Member

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    Do you disagree with the comment? Regardless of who said it, do you think it's wrong?
     
  17. York

    York Finance Broker Business Member

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    This thread is about certain people who paid no tax. The said people paid no tax because they planned their affairs in such a way under the law of this country to allow them to do so. The relevance of Kerry Packer is that he was an extremely wealthy Australian (as are the people in the article whom this thread is about) who replied with that quote above when asked if he avoids paying tax by the House of Representatives Select Committee in 1991.
    Now, the question remains - is there anyone in this country who does not try to minimize their tax?
     
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  18. Raydar

    Raydar Well-Known Member

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  19. Raydar

    Raydar Well-Known Member

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    Doesn't let me keep the time queue in the link, jump to 4min46sec
     
  20. Blacky

    Blacky Well-Known Member

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    Im not sure if we are 'celebrating' it - however, provided it is legal, then I have no issue with the individuals doing it.
    I do however have an issue with the system which allows it.

    The big difference between this and welfare recipients doing 'cashes' is that the later is illegal (I am assuming the former is).

    The Australian system is broken.

    Blacky
     
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