Foxtel Lists Among ATO Tax Avoiders
The Australian Tax Office (ATO) has listed Foxtel, News Australia and Dentsu Aegis Network as non-payers of local corporate income tax, as part of its 2015-16 corporate tax transparency report, released yesterday.
The news comes just four days before the Federal Government closes its tender for its master media account, which last year reportedly earned Dentsu over $175 million.
Foxtel Cable Television Pty Ltd and Foxtel Management reportedly paid no tax on $2,031,705,308 and $237,023,747 respectively.
Foxtel Holdings paid $19,908,594 in tax on $794,553,356 total income, whilst News Pay TV Financing paid $27,621,710.
A spokesperson for News Australia informed Mumbrella:
“News Corp Australia pays the right tax. We treat our obligations to the national seriously and comply with all tax laws”
“Tax is only paid on income (ie. profits) not revenue. The ATO disclosure of gross income is of limited use without any recognition of the cost of earning this income. The ATO acknowledges this as outlined in their guidance notes”.
The ATO’s report forms part of the Federal Government’s tax integrity package established in the 2016 budget.