Many fossil fuel companies pay little Australian tax. Part of this is, when a company borrows to invest, they can deduct the interest costs from their taxable income. So fossil fuel investment in things like oil exploration, coal railways and coal ports generate tax deductions.
These tax subsidies for fossil fuel expansion should end. Not all investment is good investment. The fossil fuel era is over. All too soon, we will have to stop using all this fossil fuel infrastructure. It is dangerous for our climate and economy
Ending tax subsidies for fossil fuel expansion would give energy companies like Exxon a big incentive to abandon opposition to renewables – and indeed incentive to invest in renewables.
*** Independent Australian: Many big companies exploit tax dodges
A former Assistant Commissioner of Taxation writes: The recent Australian Tax Office “Corporate Tax Transparency Report” is reason to be “screaming from the rooftops for many companies to explain how they have been exploiting us for years”. The report shows that 38% of the 1539 public and private foreign companies with turnover greater than $100 million paid no income tax in the 2013-14 financial year.
Independent Australia: 18 Dec 2015
*** Coalition urged to target biggest companies for billions
The Turnbull government has been urged to shift its focus to the “top end of town” to combat the worsening deficit amid evidence billions of dollars are being lost to corporate tax avoidance. Almost four in 10 large companies paid no tax last year, according to the first release of tax transparency data by the Australian Tax Office.
The Age: 18 Dec 2015
*** Washington Post: Cut emissions by cutting fossil fuel subsidies
In the United States, the debate on fossil-fuel subsidies centres on tax breaks for drillers, which cost the Treasury about $4 billion annually. These are unconscionably wasteful, and Congress should eliminate them immediately. Other countries should follow suit.
Washington Post: 14 Dec 2015
*** Shell pumped $20 billion a year from motorists: Paid no company tax
For the third year on the trot, Shell service stations generated billions of dollars and revenue but not a cent in company tax. In fact the owners of the sunny yellow servos reported tax benefits in all three years despite total sales which may be in excess of $60 billion.
Sydney Morning Herald: Michael West: 9 Aug 2015
Key Words: Climate Change, fossil fuels
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