All or nothing: Foreign banks divide over Australian tax planning
A host of financial services companies have been exposed by the Australian Taxation Office as paying little or no company tax. The revelations are found in a new report on corporate tax "transparency".Numerous international banks feature on the list of those paying, in most cases, no company tax at all in 2013-14.On the flip side, many more foreign banks did pay an abundance of company tax.The ATO lists among those that paid little or no tax as: Bank of America, Bank of Scotland, Barclays, BNP Paribas, First Data, ICBC, Leaseplan, Lloyds Bank, Rabobank and Travelex.A longer list of banks paying company tax at or near the 30 per cent rate includes Bank of Tokyo-Mitsubishi, Citi, Credit Agricole, Deutsche, HSBC, ING, Northern Trust, OCBC, PayPal, Royal Bank of Canada, Sumitomo Mitsui Banking Corp and UBS.There seems to be no middle ground, with foreign banks either paying tax at a rate equal to or close to the notional company tax rate, or none at all.Macquarie Group, a local champion, was one name with a tax rate of 16 per cent, square in the middle.