It’s not unusual for large companies to pay no income tax in a given year, since income tax is paid on profit, not revenue, and not every company records a profit every year for various reasons.“The fact that an entity pays no income tax, does not necessarily mean that they are not meeting their obligations,” ATO Deputy Commissioner Rebecca Saint said in
The nearly $84 billion tax take was up 22.2 per cent from the previous year and nearly 50 per cent higher than two years ago.“A combination of a rapidly recovering economy, high commodity prices and high levels of voluntary tax compliance, backed up by the hard work of the Tax Avoidance Taskforce over many years, has delivered in spades.”
“Where a corporate entity has tax deductions that exceed its income, it can incur a tax loss and pay no tax for that year,” the ATO said. The percentage of entities that paid no income tax has decreased since the first CTT report, down from 36 per cent in 2013-14. There are “numerous commercial reasons why corporations can make a loss”, including “sensitivity to economic and environmental conditions which may impact income and expenses” and “capital investment decisions, including reinvesting capital assets or business expansion that can lead to increased tax deductions”, the ATO added.When taken together, the percentage of economic groups that did not pay tax fell to 20 per cent because at least one entity in the group did pay income tax.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: abcnews - 🏆 5. / 83 Read more »