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Google-linked drone delivery service accused of profit shifting during world-first Australian trial

Google-affiliated drone delivery firm Wing has been accused of profit shifting during its world-first service currently rolling out in Canberra. Its tax expense during the period was listed as $144,000, after accruing more than $5 million in revenue in Australia. Wing Aviation’s financial accounts showed it recorded payments of $3.2 million to its offshore corporate group

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The LNG industry is booming. So why are we not getting the royalties?

In 2017-18, LNG companies in Australia had revenue totalling $29.7 billion, yet paid just $1.07 billion in royalties levied under the petroleum resource rent tax (PRRT). In 2016-17, from revenue of $22.7 billion, they paid only $970 million in PRRT. By comparison, Qatar, a close second behind Australia in production, received a staggering $26 billion in royalties.

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Family-owned providers criticised for lack of financial transparency

“The lack of information available on financial operations of these companies is pretty stunning and alarming, and clearly there needs to be far more public accountability on public funding and transparency in terms of financial practices and spending,” Jason Ward told Australian Ageing Agenda.

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Family-owned aged care companies criticised for ‘aggressive tax minimisation’

Some of the biggest family-owned aged care companies in Australia have been accused of using complex corporate structures to minimise their tax bill. A new report from the Tax Justice Network Australia and the Centre for International Corporate Tax Accountability & Research has been submitted to the aged care royal commission. It highlights concerns about “aggressive tax minimisation strategies”. The report examines TriCare, Arcare, Aegis, McKenzie, Hall & Prior, and Thompson.

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Aged care royal commission hears of ‘tax shift’

In a submission to the commission, two union-backed organisations, the Tax Justice Network and the Centre for International Corporate Tax Accountability and Research, raised concerns about the use of a Norfolk Island company by one aged-care group, TriCare, and the heavy use of trusts by another, Arcare.

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How multinationals shift billions in revenue offshore and what Labor plans to do about it

Labor wants to deny multinationals a deduction when they send royalty payments to related companies that pose a multinational tax risk. Labor estimates this would improve the budget bottom line by $680m over the forward estimates and $2.3b over the “medium term.” Companies that might be affected include Uber, Google, Facebook, Microsoft, McDonalds, Ikea and Aldi, among others.

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Macquarie accused of tax ‘trickery’ by Danish pension funds

Unusually, Macquarie’s European tax trauma relates not to its own affairs but its role in lending money to investors who participated in a dividend scheme in 2011.

The transactions being attacked by prosecutors enabled two sets of investors to claim a tax deduction for one dividend payment and are estimated to have denied European governments up to €55bn ($88bn) in revenue.

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