Is it true Virgin paid no tax for past 4 years?

[ozstamps]

I am no accountant but can never figger out how these large companies appear to pay no tax year after year?

Australia’s top 10 tax dodgers: Petrol and gas company Exxon Mobil

I am assuming this stuff must be true and sourced in some way?

 

[oz_mark]

Aren't you taxed on profit, on which Virgin has made little?

 

[ozstamps]

Filled up my tank today at $1.39 and I suspect Mobil made a very decent profit on that. I guess if they can apparently pay no Tax for 4 years, Virgin can.

 

[dajop]

Aren't you taxed on profit, on which Virgin has made little?

If you delve into the link and go to the commentary on Virgin Australia, the author is suggesting VA is finding a way to return earnings to its foreign shareholders, but structured to generate losses for tax purposes. I think it’s common knowledge that Branson sees a good return on his 10% investment through brand licensing fees, but do the others see anything?

 

[RooFlyer]

Aren't you taxed on profit, on which Virgin has made little?

Correct. The use of ' income' in the table in the OP is as dodgy as the practices the article is complaining about.

Filled up my tank today at $1.39 and I suspect Mobil made a very decent profit on that. I guess if they can apparently pay no Tax for 4 years, Virgin can.

Hmmm of course in saying that, you realise how much of the $1.39 is in tax, excise etc?

The accounting tricks that large offshore companies use to avoid paying tax is disgraceful, but the arguments trotted out by journalists and some others in opposition to it don't do us any favours.

 

[drron]

I would suspect that VA still has some carry forward losses.
Also it is only in the last half year that VA has made a significant profit-ie $74 million to december 2018.Of course that is in this financial year not the period in the article.

Then read the tax payable column.For VA it reads 0-so they paid all the tax they were supposed to.

 

[Must...Fly!]

Poor article. Lots of losses carried forward. They haven't owed any corporate tax so haven't paid any. Move along.

But their thousands of employees have been generating income for many other tax streams through their own income, so it's a bit of a furphy argument I believe.

 

[dajop]

Poor article. Lots of losses carried forward. They haven't owed any corporate tax so haven't paid any. Move along.

But their thousands of employees have been generating income for many other tax streams through their own income, so it's a bit of a furphy argument.

Second part of your comment notwithstanding (which is totally valid), you need to look behind the “headline” article. The referenced material isn’t about VA and other corporations paying no tax on no profit, but what they are (legally) doing to bring about this situation - to minimise there taxable profit, or maximise their loss (which is indeed what they are obliged to do for shareholders).

With VA I suspect that the answer lies in bad decisions/bad management , not the perceived “tricks” around IP etc ...

 

[theblank]

and if you look at all these companies, and how many employees they provide jobs too (who pay taxes), provided they remain in business, I really don't care.

If it really bothers people, buy their shares! But who would buy Virgin shares, the company doesnt make any money.

 

[stm1sydney]

If it is in The New Daily, it is likely to be untrue.

 

[CaptJCool]

Here’s the data I would expect they have used....

Search

4 years worth there

Tax is not simply 30% of profit


As an observation
Journal entries bury a myriad of sins. Transfer pricing, related party debt, marketing hubs and a few more
Key compliance risks for large corporate groups


What attracts our attention

For those who want the extra detail
International transfer pricing - introduction to concepts and risk assessment

Marketing hub disputes

Restructures involving acquisitions or disposals

Australia in the global economy

 

[Isochronous]

The New Daily is a trade union propaganda rag run by dumb leftists who don't know the difference between income and profit.

 

[Must...Fly!]

The New Daily is a trade union propaganda rag run by dumb leftists who don't know the difference between income and profit.

Like, Agree, Winner, Funny....wish I could give them all to you. Very true.

 

[AustraliaPoochie]

If you look at some flight bookings, its Virgin Australia International even if there are no actual international flights in the bookings.
Don't know why the word international is there, in some booking details pages of the Virgin Australia website.
Maybe what they are trying to do is move money around, the organization, legally at it too.
Maybe too its just the way they (Virgin) do things, but I do find it strange to see the word international when I am booking flights purely within Australia.
Edit: there is this too
***
How do a third of the top Australian companies pay no tax?
***
Cut and paste won't allow the link, but its wider than just VA/QF and the rest mentioned in the article.

 

[Isochronous]

Like, Agree, Winner, Funny....wish I could give them all to you. Very true.

Next think you know they'll be employing that economic illiterate Emma Alberici as their chief economics correspondent!

 

[clipped_wings]

Like, Agree, Winner, Funny....wish I could give them all to you. Very true.

I almost cried when I read this. As a (2 person partnership) who endures the agonizing and sometime humiliating scrutiny of an audit once a year (much like a colonoscopy, except more invasive) I would remind those media zealots of the Golden Tax Rule #1: It is NOT illegal to avoid paying tax. It IS illegal to evade paying tax.