Secrets and Lies: how franking credits stole the tax bonanza

Franking credits still causing incitement

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. There was nothing from US oil giant Exxon, despite its $9 billion in revenue, nothing from Chevron either, or Rupert Murdoch’s News Australia Holdings again this year; nothing from a bunch of coal giants, still relentlessly chewing through tax losses from Australia’s overly generous tax regime.

Why the silence? Was it also because nobody wanted to draw attention to the fact that this rise in tax receipts was also roughly equivalent to the amount paid out in franking credits … that the real amount received by the Tax Office was probably $6 billion or so shy of the touted $52.3 billion which headlined the transparency figures?

This is tax money which does not go to pay for submarines, education, health or pensions.

Cont..............

 

Um, Mick always has had a bee in his bonnet. Doesn't actually say where the refunds of "excess" credits went nor is it seems from the snippet you posted @Redwing it's even mentioned. The way it is written he is inferring that a company pays tax and all that is payment is handed back right away.

He's a bright boy though but this seems slightly sloppy and knickers in a twist time. A bad Chrissy lunch perhaps?

 

Sssshhhh!!!

Don't tell anyone...it has ended up in my pockets......

 

Give it back!

Or at least buy a house in the Druitt.

 

What youse sayin'.....I swear.....did Druites a favor...I put in my pocket..instead of dem spending it on luxuries like Dom Druie...and Cash for Hash..

Besides.... I ain't supporting a Boganaire like youse.