Funny Stuff Tax Policy

Common sense test… There is none at Fairfax…

In another weak attempt at understanding the tax system Fairfax are arguing we get rid of the tax system and replace it with a common sense test.

They have tried every angle on why multinationals are naughty boys and failing at all of them, they are now arguing we should just use common sense at start taxing those naughty IT companies…

If they want common sense, try this…

What the anti google and amazon authors are arguing for is ridiculous. If my company writes an app called “Angry lefties” and it is only purchased from my website five times, once by a Uzbeki, once by a Syrian, once by a New Zealander, once by a Norwegian and once by a Canadian, according to their bleetings I should prepare five tax return in each of the five countries where the person decided to use my app (this is the only way Australia will get the share of the profits these Fairfax journalists want), rather than declaring my income where I am a resident, where I developed my app and claimed all my deductions for developing it… It is the classic problem of “journalists” not being able to see the comic practical conclusion of their ideas…

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

One reply on “Common sense test… There is none at Fairfax…”

And Ken, I bet Fairfax have never done any masthead revaluations or leveraged investments and I am sure they advise their accountants to make sure they pay as much tax as possible! Maybe we should have “subsets” of individual returns. You could fill in “Young and happy but poor Gen Y”, “Gen Y supported by parents”, “Mum and Dad investor”, “Battler”, “Gen X – non-private school parent”, “Gen X – Private school parent”, “Baby boomer who got all the advantages” or “I am just really rich”. They could each have their own tax rate based on what is “fair”!! By the way, I think fair is defined as “I shouldn’t have to pay but someone else who has more money than me should”. Just can’t find the section reference right now…..

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