Carmakers Ford and Holden have responded to claims the companies minimise the amount of tax they pay in Australia.
According to Michael West research, General Motors Holden, Ford Australia, Mitsubishi Motors Australia and Nissan Motor Company Australia have paid little, if any tax in years and take up several top-40 rungs on its list of companies which pay little or no tax.
GM Holden, which rates eighth on the list, has a three-yearly income of $10.35 billion which resulted in $0 of taxable income in the same period, according to independent business and finance investigation outlet Michael West (MW).
GM Holden director of communications Anna Betts says its financial contribution goes beyond tax.
“Regulatory compliance is always a top priority at Holden and we contribute to federal revenue in a range of ways including employing nearly 7000 employees across our business and dealer network,” Betts says.
Ford Australia is also on the on the Michael West list at 17, with nearly $8 billion in three-yearly income having reportedly resulted in zero tax paid.
Ford Australia spokesperson Jasmine Mobarek told AutoTalk it has paid its fair share in more ways than one.
“In the last 10 years, our government grants add up to approximately $775 million and Ford’s investment in R&D adds up to more than $3.6 billion,” she says.
“Ford have spent $8 in R&D and taxes for every $1 received in government grants. It’s also important to note that during this period, Ford paid about $2.6 billion in taxes to federal and state governments,” she adds.
MW reports the Australian Accounting Standards Board is still awaiting a Senate inquiry report after submitting its investigation on Ford’s “slide in corporate disclosures” three years ago.
Other entities on the list include Nissan Australia at #21 and Mitsubishi Motors Australia at number #30.
“The automakers have won billions in government handouts over the years, often made losses and very rarely pay tax. In their defence, it should be said that this is a high-cost, competitive industry which has been up against a slew of rival importers,” the Michael West report says.
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