Absolutely agree with you Einstein. IKEA, Apple and others, both domestic and foreign, are more than happy to leach off the physical and social infrastructure that taxpayers over generations have paid for, but pay tax themselves? You have to be kidding.
Solution. Bin the whole idea of taxing profits in the first place. Bin the Hydra that is the Income Tax Assessment Act and replace it with a Sales and Production Tax Act. Impose a flat sales tax or production tax (where appropriate) of say 10% on every business (this is separate from the GST). In return what a company or business makes is their business so get rid of corporate tax altogether. Yep, 0% corporate tax rate.
How many billions do we waste trying to figure out what a company earns from a tax point of view? Just tax sales revenue or the export value of goods and services or tax the production value of such goods and services if a company doesn't technically sell something but instead transfers the physical product, service or benefit to another entity or person.
Further, get rid off this ridiculous idea of expense deductibility from the taxation point of view. Who cares what a company's rent, employment, insurance, cost of goods sold, etc., are? That's their business. What does it matter what IKEA and others actually make? No one will ever know apart from a few key insiders. So concentrate on the revenue and production side only. If you sell it or make it or produce it here you pay a flat tax on it's sales/export/production value. Business entities can adjust their prices accordingly.
Under a Sales and Production Tax Act you won't hear the likes of IKEA with over $4 billion in sales and $1 billion in profits paying only $30 million in tax during this period (3% tax rate) but instead you would hear that IKEA paid $400 million in tax on $4 billion in sales which seems a lot fairer to me and would be vastly simpler to administer.
