"The nine-person working group, set up by Mr Swan after the tax summit, is examining a proposal known as Allowance for Corporate Equity, which would apply no tax to the portion of corporate profits necessary to get a reasonable return on equity. Most companies - especially manufacturers - fail to meet that hurdle and would pay no corporate tax.
Banks and mining companies make a much greater return on equity and so would be liable for the super tax on the excess portion of their earnings. A working group member, John Freebairn from Melbourne University, told the conference the super tax rate could be as high as 40 or 50 per cent. He nominated McDonald's and KFC as examples of companies able to make larger than normal profits because of the power of their brands."
Read more: http://www.smh.com.au/business/swan-tax-shakeup-targets-super-rich-20111205-1ofj9.html#ixzz1fiQQSP6i
No comments:
Post a Comment