Over 1,200 Major Companies, Including Qantas And Netflix, Paid No Income Tax In 2022-2023: ATO
A shocking report from the Australian Tax Office (ATO) revealed that over 1,200 large companies, including Netflix Australia, Qantas Airways, Virgin Australia, and Canva, paid no income tax in the 2022-2023 fiscal year.
The big companies have drawn criticism for exploiting tax exemptions and deductions to offset losses and reduce their tax bills to zero despite generating high profits.
Qantas and Virgin Australia used carried-forward pandemic losses to dodge taxes in 2022–2023, while Netflix Australia made nearly AU$1.15 billion in the 2023 fiscal year without paying taxes, The Guardian.
However, a spokesperson for Canva said the company fully adhered to all tax laws and regulations, contributing millions annually through payroll taxes.
"Our focus on R&D not only drives innovation and job creation here in Australia but also qualifies us for the government's R&D tax incentive, which helps reduce our income tax payable so we can reinvest even more in innovation," the spokesperson added.
The report, however, said that in the event of its income tax exceeding its income, a company can incur tax loss, which was then carried forward to offset future tax liabilities. The situation mainly arose when the company was undergoing development or expanding at a rapid pace.
By allowing companies to claim these losses, the tax system provided a financial cushion, enabling businesses to weather challenges and invest in future growth.
The ATO released annual reports containing corporate tax information for companies with annual revenues exceeding AU$100 million. The report tapped into both Australian public and foreign-owned business data and also privately held Australian-owned businesses with incomes over AU$200 million.
The report also pinpointed News Corp-affiliated News Australia Holdings for tax delinquency, despite a AU$1.88 billion turnover for the 2022–2023 fiscal year. Likewise, Domino's Pizza Enterprises made AU$704 million during the fiscal year 2023 without paying taxes.
Australia's mining industry remained the nation's largest taxpayer, contributing AU$43.1 billion in company tax for 2022/23, according to the ATO report. Since 2014-15, the industry's tax revenues have increased fivefold, funding vital services, including national security, schools, roads, hospitals, aged care facilities, and the NDIS. The top 20 biggest taxpayers are mostly mining businesses, with Rio Tinto, BHP, and Glencore at the top.
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