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2010-05-23

Bizarre logic by the government

Media reports that both Gillard and Swan state that multinational mining companies like BHP and Rio Tinto only pay 13% effective company tax rate. See “Mining companies pay only 13% tax: Gillard”, 23/05/2010, http://www.smh.com.au/national/mining-companies-pay-only-13-tax-gillard-20100523-w3gg.html
The report starts:

The federal government has opened a new front of attack against miners in the fight over the proposed resource rent tax, saying multinationals such as BHP Billiton and Rio Tinto pay just 13 per cent tax.
Deputy Prime Minister Julia Gillard says the low effective company tax rate proves big mining companies can afford to pay more.
"These are the cold, hard facts - the truth," she told the Nine Network.
Domestic mining companies pay an effective company tax rate of just 17 per cent, Ms Gillard said.
"For the overseas companies, the multinationals, (it's) around 13 per cent.
"This is not a fair share and that's why we're moving to introduce the resources super-profits tax."

The claim seems ridiculers. If it is true, then why the Australian government has allowed that to happen?

It appears to demonstrate how desperate the government has become.

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