Ad agency Clemenger Group paid the same tax as Google in 2013-14 according to tax office
Advertising agency Clemenger Group paid almost as much tax as Google in the 2013-14 financial year despite having Australian revenues of less than half the internet giant, according to documents released for the first time by the Australian Tax Office.
The list includes tax and revenue details of more than 1,500 leading companies including 35 media and marketing companies, and shows Google as having paid $9.2 million tax on total revenues of $357 million and a taxable income of $90 million during the 2013-2014 financial year.
Clemenger meanwhile paid $8.9 million tax on revenues of $167 million and a taxable income of $35 million.
News Australia Holdings, owner of the News Corp publishing and printing operations, had revenues of $2.8 billion, but paid no tax. News Corp’s investment arm, News Australia Investments, had revenues of $1 billion and a taxable income of $97 million, on which it paid tax of $4.2 million.
The push comes as part of a government initiative to make tax more transparent.
Apple boasted revenues of $6 billion, with a taxable income of $247 million and paid $74 million tax, while
Fairfax Media had revenues of $1.65 billion with a taxable income of $69 million and paid $16 million tax.
Nine Entertainment Co. Holdings, parent of the Nine Network, had revenues of $1.62 billion and taxable income of $33 million, but paid no tax. Ten Network Holdings also paid not tax on revenues of $660 million, while Seven West Media paid $28 million tax on revenues of $1.89 billion and a taxable income of $127 million.
Bauer Media Australia had revenues of $470 million, with a taxable income of $15.4 milllion and paid tax of $4.5 million.
Advertising agency holding company Enero Group, parent of BMF and Naked, paid no tax on revenues of $146 million, while STW Group, which this week announced a merger with WPP, paid $1 million tax on revenues of $118 million and a taxable income of $34 million.
WPP Holdings paid $5.5 million tax on a taxable income of $30 million and revenues of $295 million.
Aegis group had revenues of $388 million and a taxbale income of $28 million, resulting in tax of $4.7 million.
Other companies in the media and advertising sector with revenues in excess of $100 million and which paid no tax included Adcorp Holdings, APN News & Media, BBC Worldwide Australia Holdings, Foxtel Cable Television, Fremantlemedia Australia Holdings, Nova Entertainment (Australia) and Salmat Limited.
Chris Jordan
Commissioner of Taxation, Chris Jordan, said the publication of the tax details was part of a global push for greater corporate transparency.
“The transparency measure gives the community the opportunity to see some corporate tax data that the ATO holds,” said Jordan.
“Community trust and confidence in the way these large companies operate matters. And, tax should matter to these companies. It is not something to be taken lightly. Collectively, these 1,500 large corporates paid almost $40 billion in company tax in the 2014 fiscal year.”
While a large number of companies on the list did not pay tax in the 2013-2014 fiancial year, that did not mean that they had engaged in tax avoidance.
Jordan added: “No tax paid does not necessarily mean tax avoidance. Any companies with unusual financial or taxation numbers are closely investigated by the ATO.
“Over half of these 1,500 companies have been subject to ATO review or audit over the past three years, with the ATO’s risk and intelligence systems working all the time to ensure that we can all have confidence in the tax system.”
Simon Canning
Could anyone explain why some companies are showing $0 tax paid?
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Some companies may be ‘posting losses’ for the year, but generally it’s a sign of how leaky and badly constructed our tax system is.
Packer was openly saying he paid no tax in the 80’s, it’s hardly new, but no government tidies it up. However the current phenomenal extent of tax avoidance by the big end of town and lack of mining boom may change this…..maybe.
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Google is an absolute disgrace and a bad corporate citizen.
A predator on the Australian economy.
They support nothing, they sponsor nothing, they give nothing. It’s all take.
But let’s not forget the real villains in this piece: their anonymous, slimy accountants and lawyers who use chicanery to cheat Australians out of the revenue.
It’s time they were outed, too.
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@E
If there’s more out going than incoming then there’s not going to be any profit, so no tax.
What I find interesting is that some companies have a large taxable income, but then pay 0 or much less than 29% tax.
Look at Microsoft and Foxtel, they’re paying almost exactly their 30% in tax. Could they actually be the good guys here??!!
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@Not an accountant
Thanks for the explanation, makes sense!
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