mariacostel
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Australian Politics
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Sydney
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perceptions_now wrote on Dec 28 th, 2015 at 7:26pm: mariacostel wrote on Dec 28 th, 2015 at 5:41pm: perceptions_now wrote on Dec 28 th, 2015 at 1:15pm: I re-post the following here, as it is relevant! perceptions_now wrote on Dec 28 th, 2015 at 1:13pm: Ikea’s tax bill dwindles despite big sales Swedish furniture giant Ikea’s poor run of profitability in Australia has continued despite booming sales and a growing store network, with the group again sending tens of millions of pre-tax dollars offshore, significantly shrinking its profit and local tax bill. While Australians’ love of Ikea furniture, housewares and storage products has never been stronger, with the retailer adding nearly $100 million in sales for the 2015 financial year, the global retail juggernaut cannot seem to get its after-tax profit moving in the same direction. Ikea’s latest financial accounts, lodged with the corporate regulator and obtained by The Australian, include an impenetrable set of statements for the year to August 31, 2015.
The accounts include a series of unexplained costs and payments that amount to nearly $90m, which stripped away from an otherwise robust gross profit of more than $300m for the year.The bottom-line results for Ikea Australia reveal net profit for 2015 actually fell to $15.1m, from $21.64m in the previous year, marking a massive 30 per cent slide in profitability for the period. Revenue for 2015 rose to $827.39m, from $733.46m, a gain of 13 per cent. By the time a ‘franchise fee’ of $27.56m and ‘other expenses’ of $61.83m was applied to the retailer’s gross profit of $300m, Ikea’s profit before tax had been whittled down to only $24.47m. These other expenses do not cover the usual costs of doing business such as wages, advertising, rent and occupancy costs.In 2014 it was a similar story, with franchise and other expenses totalling $70.9m while an opaque line item titled “payment under risk agreement’’ swiped another $37.06m from Ikea’s before-tax profit. It is believed all of these payments are sent offshore to more friendly tax jurisdictions. http://www.dailytelegraph.com.au/business/breaking-news/ikeas-tax-bill-dwindles-...============================================== A few observations - 1) If it is so obvious, that Tax on Australian generated Profits are being "evaded", the Why doesn't the ATO take Legal action?
2) If the Proper amount of Tax on Australian generated Profits are being "evaded", because Australian Politicians have not done their job properly in constructing the OZ TAX LAWS, then its past time when they (our Politicians) were given the only message they understand.
Q. What is "THE message" that our Pollies understand?
A. Sack every "incumbent", at the next election & keep doing so,
UNTIL THEY FINALLY GET IT - THE MESSAGE!!! WHY must you be the only person in the country that doesn't yet realise that? Countries around the globe are working together to find a solution to this problem because it will require a global collaboration. Please try and keep up with the facts! Well Longy, it seems your "Reading & Comprehension" still haven't got any better, as you missed, elected not to read or didn't understand the following, which was in my post! 2) If the Proper amount of Tax on Australian generated Profits are being "evaded", because Australian Politicians have not done their job properly in constructing the OZ TAX LAWS, then its past time when they (our Politicians) were given the only message they understand.Our Pollies & Others, can resolve the Problem/s, IF THEY WANT TO! No one wants to listen (and no one actually does) to your conspiracy theories about tax laws. If you are so good then go and stand for parliament yourself. But no... can't do that, can we? That might mean I have to do something other than whine incessantly and incoherently about it.
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