I am with ACB, simply because i dont believe the Rudd government is capable of spending money!!
ok, back to the "super profit tax". here is the idea: the big miners are paying 40% tax, whereas other business will be paying only 28% tax. what is going to happen? for example, Miner A has 100 bucks profit, he has to pay 40 dollars for the tax, leaving 60 bucks in the pocket. what if A says to "small company" B: "hey buddy, i give you 30 dollars, but in returm you have to write me a invoice of 100 bucks".
the situation then becomes:
A: no tax paid by looking at the book, but in real term 70 bucks in the pocket, nice...
B: paying 28 bucks for the tax, leaving 2 bucks to spare, no service ever provided, nice.....
the auditor? get him on board!!!
this is some tricky stuff, but in reality it happened, some country implementing different tax rate for differernt business type, and in this world we got people specialising in that...
what's even worse is that, company B doesnt need to be "small", the banks only get charged for 28%. i am pretty sure they do better calculation than me.
