Reprised: Tax minimisers thrive in banking
Vote early, vote often, the saying goes. Forecast early, forecast often was the brilliant lead of a weekly column by Ian Cassie, the AFR Investor's economics columnist in 1989 castigating the energetic and inventive output of finance sector economists with reputations to develop.Hats off to readers who remember the AFR Investor, but we digress.Report early, report often might fit the bill in the context of positioning Banking Day's lead article yesterday, headlined All or nothing: Foreign banks divide over Australian tax planning.This article was a solid and informative read.But a tad repetitive, the newsletter now recognises.The Australian Financial Markets Association pointed out that "the data on which the article was based was released publicly in December 2015, and issued again yesterday to incorporate the private company data."And indeed Banking Day reported this on Friday, 18 December 2015, our second last edition for the year.Double hats off to any reader that recalls the following, reproduced today in full:"Tax minimisers thrive in bankingA close association with the funds management scene may correlate with the success of international banks at minimising Australian company tax.State Street and BNP are two of more than half a dozen global banks that reported no company tax paid in Australia, mostly as these famous firms had no taxable income.Barclays, Credit Suisse, Goldman Sachs and JP Morgan also headline the 'too smart to pay tax' club in Australia.Other financial services notables in the frame are AIG, American Express and First Data.In contrast, the Big Four ranged from ANZ, which paid a tax rate of 13 per cent on its taxable earnings in 2013/14, to NAB (20 per cent), Westpac (27 per cent) and CBA, with a tax rate of 29 per cent.Clearly, there is nothing level about this particular playing field, although the large globally defined corporates have been put on notice by the OECD/G20 Base Erosion and Profit Shifting Project, and through a programme of events and legislative consultations, and the secondment of tax officials.Governments across the world are hoping the BEPS project, which in essence is aimed at making companies pay tax on their operational profits in the country where those profits were earned, will slow the erosion of the company tax base."Our news judgement that day ranked the article at eighth out of 11 editorial items. Old favourites NAB, CBA, ANZ, APRA and even rats and mice all pushed the tax story into obscurity, at least from the memory of the Banking Day crew yesterday.Thanks to AFMA for helping to clear this up.