SO YOU GALAHS WANT MORE TAX?
... a million says ya won't get it!
Four-time Walkley Award winning political commentator and Churchill Fellow, has returned to the fray over concern that the integrity of news dissemination is continually being threatened by a partisan media.
Kerry Packer is proving more right now than when he gave a Senate inquiry a tongue lashing over corporate taxation way back in 1991. “Multinationals” is a satanic term invented by Communists from the 1950s searching for an egalitarian form of income redistribution. The ideologues have changed but the ideology remains the same.
Iranian, Sam Dastyari was parachuted, unelected, into Matt Thistlethwaite’s Senate vacancy with three years’ tenure remaining, after Bob Carr and the ailing Graham Richardson, of the powerful NSW Right faction gave him the nod.
Dastyari, an avid Rudd supporter, was instrumental in knifing Gillard who ironically had parachuted Bob Carr, unelected, into yet another Senate vacancy, gifting him the Foreign Affairs portfolio he was promised after having assisted her to knife Rudd.
So if you can understand the incestuous factional system of ALP promotions, if you can figure out who is actually f***ing who in the zoo, then you stand a good chance of filling a Labor Senate vacancy yourself.
We are now blessed with the spectacle of regurgitated commo inquisitors, like Dastyari and Christine Milne, attempting to understand the convoluted, labrynthine corporate law the dumb Left politicians framed in the first place!
As Kerry said, "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 you extra."
Here’s what Dastyari and Milne need to get through their thick little commo heads: We are now, more than ever before, operating within an integrated global economy.
“Multinationals” have a duty to shareholders to minimise tax legally. Call it avoidance, evasion or avoision, it’s only ever about minimising tax legally. And “multinationals” are not that keen on breaking any sovereign laws... the savage penalties have CEO-sacking dimensions.
Now, if Dastyari and Milne (who cop another $30k plus exes for sitting on each and every inquiry and committee) had any inkling of how free enterprise works they would be making it more attractive for “multinationals” to domicile themselves here rather than chase them out of town into the welcoming arms of Luxembourg or Hong Kong.
Dastyari and Milne have little hope of dissecting or understanding Corporate Law anyway, that’s the specialist domain of far smarter people employed by the “multinationals”, so this farcical “inquiry” is going to achieve nothing but more Packer-type embarrassment for the accusers!
Profit-shifting and transfer-pricing is part of the chess game the politicians themselves invented and now they are in need of more money they accuse their opponents of cheating, but it’s hard to cheat at chess. So the only way is for the pollies to invent different rules, rules that will be immediately circumvented by the far smarter “multinationals”.
Australia maintains the most burdensome taxation regime in the world with PAYE tax topping out at 49% and Company tax set at 30%. The differential in both these taxes promotes the setting up of companies that can take advantage of split incomes, write-offs, deferments and an array of other legal manoeuvres that legally minimise tax.
The Government is now considering bringing company and PAYE tax rates closer together in order to dissuade workers from registering “tax-dodging” companies. Another stupid move, as even the big Australian, BH-P, has been known to have legally paid as little as 4% company tax in any one year.
Australian corporations are legally moving overseas in droves to escape an Australian tax regime that already takes 90c in every dollar earned via PAYE, GST, Payroll, provisional and withholding taxes, alcohol and tobacco taxes, petrol, stamp duty on houses and cars, endless licence fees, a capital gains impost, a medicare levy and myriad other taxes, levies, licences, duties and royalties.
When they finally figure out where the evil taxpayer has been legally minimising his tax, they not only make it illegal, they do a “Fraser” and make it retrospective!
That’s like running around putting up “no parking” signs where cars are currently legally parked and sending the owners a bill.
Here’s the nub: Let’s take just one legal tax shelter, the Asian financial hub of Hong Kong. Any company can base itself there and sell its product outside Hong Kong and pay NO tax. If it wants to sell to the Hong Kong market of a mere six million people, then it pays no more than 15% company tax on that portion of its profit.
That’s quite a disparity and an open invitation to escape a suffocating Australian taxation regime.
Our problem with diminishing taxation receipts is Dastyari’s and Milne’s beloved welfare system, the one the world’s migrants are fully aware of and, as ALP voters, they won’t allow it to be touched... so it’s back to whacking the wealth creators.
Trouble is the wealth creators will tell Dastyari and Milne to shove it up their respective clackers, and simply move on to more welcoming jurisdictions.