Google, Apple and Microsoft were quizzed by a Senate committee about their tax arrangements

[barryqwalsh]

Microsoft's Bill Sample, who flew in from the US to represent the company at the hearing, said $2 billion worth of software sales generated in Australia is billed to Singapore.

Under questioning from independent senator Nick Xenophon, Mr King said Apple Australia is owned by Apple Ireland, which has a relatively low corporate tax rate. But he admitted he had never been on a business trip to Ireland.

Apple had turnover of $6 billion in Australia last year and paid $80 million in tax.


Tax avoidance hearing Google Microsoft and Apple tell Senate committee they fully comply with Australian laws

 

[barryqwalsh]

Antony Ting is a tax expert at the Sydney University Business School.

Antony, I've got this iPad here. It was about $600. Can you explain to me where the money goes?

ANTONY TING: When you pay the $600 for this beautiful iPad, $550 in fact is paid to Ireland. Apple has a subsidiary there. That means it leaves very little profit to be taxed in Australia. To make it worse, out of the $550 paid to Ireland, $220 is never taxed anywhere in the world.

HAYDEN COOPER: Ever?

ANTONY TING: Ever.

VIDEO/TRANSCRIPT

Is money made in Australia going overseas with some of the world s largest companies - 08 04 2015

 

[Roadrunner]

Microsoft's Bill Sample, who flew in from the US to represent the company at the hearing, said $2 billion worth of software sales generated in Australia is billed to Singapore.

Under questioning from independent senator Nick Xenophon, Mr King said Apple Australia is owned by Apple Ireland, which has a relatively low corporate tax rate. But he admitted he had never been on a business trip to Ireland.

Apple had turnover of $6 billion in Australia last year and paid $80 million in tax.


Tax avoidance hearing Google Microsoft and Apple tell Senate committee they fully comply with Australian laws

I'd like to see them grilled about doing business is countries that behead, stone and hang gays.

You won't hear those questions though.

 

[EdwardBaiamonte]

Its a problem for sure when you force companies to compromise their efficiency by moving off shore to fulfill their fiduciary obligations to their shareholders. The best solution is to eliminate the corporate tax altogether. That way our companies and foreign companies would become much more efficient and competitive, relocate to America, invest in America, and employ in America. Its a win win win!!