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Crooked Govt help Crooked people escape taxes
Companies shift billions in Singapore
It has been revealed Australian companies funnelled almost $110 billion in and out of low-tax Singapore in one year as tax authorities globally ramp up focus on the world’s richest.
As the Australian Taxation Office confirmed it was looking at the financial affairs of 800 Australians, data shows Singapore is by far more important for local firms than major trading partners such as the US and Japan.
It comes as the leak of more than 11 million documents from the Panama legal firm Mossack Fonseca has shown how some of the world’s most powerful people hide money to avoid tax.
Russian leader Vladimir Putin is among those identified along with Australian individuals and firms, including some investigated under the ATO’s Project Wickenby assault on offshore tax schemes.
Tax-office data also shows how keen Australian firms have become to move money through Singapore, where the corporate tax rate can be as low as 2 per cent.
In 2013-14, Australian firms declared revenues in Singapore through “international related-party dealings” of $51.2 billion, a 13 per cent rise on the year before.
Firms declared expenditures with related firms in Singapore of $57.8 billion. The money-flows through Singapore dwarf other countries, including the US ($16.4 billion in revenues), Britain ($17 billion) and Japan ($12.3 billion).
The ATO said its profit-shifting programs focusing on firms with cross-border trading entities had raised $422 million in tax liabilities. “The ATO is working closely with the Singaporean authorities in dealing with non-compliance with Australian tax laws in relation to profit-shifting,” it said.
The Panama leaks are with the tax office, which said it had linked more than 120 Australians to an “associated offshore service provider” in Hong Kong.
Deputy commissioner Michael Cranston said the tax office was matching the latest data against information it had already raised.
“We have been able to identify patterns such as clusters of individual taxpayers and advisers for further investigation,” he said.
Treasurer Scott Morrison said the Government had a strong record in fighting tax avoidance. “We’ve got some $400 million over the last few years from acting on sources and information,” he said.
Deputy Labor leader Tanya Plibersek said the Government had reduced tax transparency for big private firms, which harmed funding essential services.
“It is hard to pay for our health and education and other investments in our community if very large companies and high net wealth individuals aren't paying their fair share,” she said.
Companies shift billions in Singapore
It has been revealed Australian companies funnelled almost $110 billion in and out of low-tax Singapore in one year as tax authorities globally ramp up focus on the world’s richest.
As the Australian Taxation Office confirmed it was looking at the financial affairs of 800 Australians, data shows Singapore is by far more important for local firms than major trading partners such as the US and Japan.
It comes as the leak of more than 11 million documents from the Panama legal firm Mossack Fonseca has shown how some of the world’s most powerful people hide money to avoid tax.
Russian leader Vladimir Putin is among those identified along with Australian individuals and firms, including some investigated under the ATO’s Project Wickenby assault on offshore tax schemes.
Tax-office data also shows how keen Australian firms have become to move money through Singapore, where the corporate tax rate can be as low as 2 per cent.
In 2013-14, Australian firms declared revenues in Singapore through “international related-party dealings” of $51.2 billion, a 13 per cent rise on the year before.
Firms declared expenditures with related firms in Singapore of $57.8 billion. The money-flows through Singapore dwarf other countries, including the US ($16.4 billion in revenues), Britain ($17 billion) and Japan ($12.3 billion).
The ATO said its profit-shifting programs focusing on firms with cross-border trading entities had raised $422 million in tax liabilities. “The ATO is working closely with the Singaporean authorities in dealing with non-compliance with Australian tax laws in relation to profit-shifting,” it said.
The Panama leaks are with the tax office, which said it had linked more than 120 Australians to an “associated offshore service provider” in Hong Kong.
Deputy commissioner Michael Cranston said the tax office was matching the latest data against information it had already raised.
“We have been able to identify patterns such as clusters of individual taxpayers and advisers for further investigation,” he said.
Treasurer Scott Morrison said the Government had a strong record in fighting tax avoidance. “We’ve got some $400 million over the last few years from acting on sources and information,” he said.
Deputy Labor leader Tanya Plibersek said the Government had reduced tax transparency for big private firms, which harmed funding essential services.
“It is hard to pay for our health and education and other investments in our community if very large companies and high net wealth individuals aren't paying their fair share,” she said.
