[exidy]

I agree that corporate tax avoidance is a problem and needs to be addressed on a global basis.

But as an Australian, I think we're missing the elephant in the room. We hold up these prominent brands like Nike and Apple, but ignore the fact that they are products designed and manufactured elsewhere. All we do in Australia is open the shipping container and distribute the goods to stores. Very little value is added in Australia. Regardless of tax changes, the tax revenue from simple distribution is always going to be low.

If we want to improve our corporate tax revenue, we need to create things in Australia, whether that's manufacturing, software, services or whatever.

[plaguuuuuu]

I don't think that closes the loophole. Although I don't know much about taxation. AFAIK an Australian manufacturer could just as easily do the same thing - set up a shell company in Ireland or wherever then fund the local company's operations and factories through 'loans' which must be paid back to the parent company in Ireland

[photojosh]

Agreed. Disclaimer: I have a slight confirmation bias because I'm involved with "creating things in Australia"...

The article doesn't mention sales tax (so 10% of the purchase price does go to the government), or the income tax from the people who work in distribution and retail.