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No, tax evasion is illegal. Tax avoidance is the term used for companies exploiting legal loopholes to pay little to no tax. I'm arguing the system should be reformed to facilitate a lot less tax avoidance from multinational corporations, as it puts a heavier tax burden on small businesses and ordinary workers.Tax avoidance is never legal.
Using the tax act to reduce your tax bill is exactly what the tax system is designed to facilitate.
Exactly. That's why we need to find ways to tax them properly. I'm not an expert on tax accounting or business so I couldn't tell you what the solution is. But unless there are caps on the level to which business profits can be shielded from company tax, lost revenue has to be made up for somehow. I would imagine that's a barrier to the removal of payroll taxes.that doesnt stop an uber or amazon who are yet to post a profit because they reinvest all of their earnings in the company
It's subjective, of course. In my mind, the fair amount of tax to pay reflects the amount of economic value that a company has extracted from society. The most obvious way to quantify that is as a percentage of total profits made in Australia, but as you know, the attempts to do this directly are often subverted by various accounting tricks such as "licensing fees" paid to overseas parent companies.also, whats "fair"?
Again, I don't know enough to give you a nice, neat solution. Capping reinvestment deductions might be a start, but that would likely have unintended consequences that I haven't thought through.





