Whyalla

Discussion in 'Four Corners' started by drago brelli, Jun 30, 2012.

  1. Bandwagon

    Bandwagon Coach

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    Why not simply strengthen and enforce legislation that identifies rorting, and make it more likely to prosecute offenders. Then increase the penalties for doing so.

    It occurs to me a rather poor argument to say if they won't pay the level of tax we set, we should set it lower.

    It's worth noting that in the example I gave, the ATO have successfully prosecuted Chevron, all be it at a minimal level when compared to the amount of dollars involved.
     
  2. Surely

    Surely Moderator Staff Member

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    How do you stop multinationals profit shifting ?

    This is the problem when you have comparatively high company taxes.
     
  3. undertaker

    undertaker First Grade

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    On the topic of Whyalla, has anyone ever been there?
     
    Last edited: Nov 21, 2015
  4. Bandwagon

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    It's a problem you have when you have low tax jurisdictions.

    In the case above, profits are shifted through inter company or related party loans where profits are eaten up in the Australian entity through an inflation of the interest rate. This is a fairly common practice amongst multinationals.

    Where it can be reasonably shown where the differential in these rates is clearly serving only the purpose of shifting profits, I cannot see why it cannot be addressed through legislation with the necessary degree of political will applied.
     
  5. B-dos

    B-dos Referee

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    its not just interest rates

    parent companies located in tax havens charge the australian company a management fee, or a licence fee for use of the IP etc etc.

    the thing that gets me is that people actually think its as easy as 'close the loopholes' and all of a sudden these companies are going to pay millions or billions more in tax. it wont happen. they will find other ways to move money about. even if it means buying up the entire supply chain
     
  6. Chook

    Chook First Grade

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    Once.

    Chook.
     
  7. Bandwagon

    Bandwagon Coach

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    So..

    We lower the tax rate because it's too hard and we may as well just cop it in the arse.

    Or, we legislate to circumvent such practices.

    Or, we do nothing..


    It's amazing we can legislate to persecute all kinds of people, unless they are corporate rent seekers.
     
  8. B-dos

    B-dos Referee

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    we work with our global counterparts to establish international tax law reforms

    reckless legislation will end up being to the detriment of the country imo
     
  9. bazza

    bazza Coach

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    Capital is highly mobile, so when you close one loophole another will be found
    Better to not make it worth their while to find the next loophole

    Also I don't think that it is fair to tax say Google or Facebook for earnings from Australia when they don't really have a presence here. BMW doesn't get taxed in Australia on profits from exporting cars to here from Germany
     
  10. butchmcdick

    butchmcdick Guest

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    Using your logic it will only take one country to not follow the agreement and to the detriment of all nations who signed up to the said agreement

    It's a tricky area
     
  11. B-dos

    B-dos Referee

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    it is very tricky butch,, which is why those shouting 'close the loopholes' as though its something easily done by politicians here in australia are rather ignorant
     
  12. butchmcdick

    butchmcdick Guest

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    Really what can they say ?

    Sorry guys, it's too hard

    Joe Sixpack you keep paying your taxes while the big boys pay none ?
     
  13. bazza

    bazza Coach

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    Does Joe Sixpack or big boy have more land holdings?
     
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  14. Surely

    Surely Moderator Staff Member

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    Arrium's troubled Whyalla steelworks could become a generator of electricity to feed the power grid if purchased by the right bidder, administrator Mark Mentha has said.

    He held talks today in Whyalla with South Australian Premier Jay Weatherill and Energy Minister Tom Koutsantonis on the future of the steelworks, which went into administration 12 months ago.

    Mr Mentha updated them on proposals from the two international bidders to take on the steelworks, port and mining operations.

    In turn, Mr Weatherill briefed the administrator on the State Government's $550-million energy plan.

    "The measures contained in this plan are about ensuring energy security for large industrial users like Arrium and the Whyalla steelworks," Mr Weatherill said, stressing there was a need to promise investors a secure environment.

    Mr Mentha said the Government's plan would hearten any buyer of the steelworks, which lost $25 million when a statewide blackout hit South Australia last September.

    "We see it as all very, very positive and it creates a warm investment climate for those bidders," he said.

    Co-generation plant proposed at steelworks
    Mr Mentha said one of the bidders was proposing a major upgrade of the steelworks' powerhouse to create a co-generation plant which could eventually feed excess power to the national market.

    "That is their intention, absolutely, to become a net exporter of power into the grid," he said.


    http://forums.leagueunlimited.com/threads/abbott-and-whyalla.409051/


    If only they had affordable reliable baseload power in SA

    I wonder what went wrong
     
  15. SpaceMonkey

    SpaceMonkey Coach

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    Every time this thread pops up I click on it to see if Whyalla has finally been wiped off the map
    Every time I'm disappointed
     
  16. Jimbo

    Jimbo Immortal

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    Hang in there Spacey. It looks like Labor is still at war with Whyalla

    Jay is obviously trying to finish with his RET what Julia started with her carbon tax
     
  17. Surely

    Surely Moderator Staff Member

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    Jay is installing batteries
     
  18. 2_Smoking_Guns

    2_Smoking_Guns First Grade

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    but tony saved Whyalla... and lamb legs..... and Gillard hasn't been in power for almost 4 years..... you're looking a little desperate these days dimbo....
     
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  19. SpaceMonkey

    SpaceMonkey Coach

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    Good, hopefully he gets the job done. A Whyalla local once described the place as the Eighth wonder of the world: a hole above the ground.
     
  20. Bandwagon

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    I wonder which Chinese government backed corporation is going to be the successful bidder.
     

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