CIPS Australasia Linked In recent activity

Andrew MacAskill, Managing Director at The Source Recruitment, has asked CIPS Australasia Linked In members “Should there be a tax applied to companies that offshore?”

Andrew has been meet with the following responses:

Daniel Fedder, Contracts Advisor at Xstrata Copper, has stated that there should be tax incentives for companies onshore and not an additional tax for offshore companies.

“This would create an environment whereby companies are willing to invest in Australian manufacturing. If we add taxes to offshore companies the likely effect is an impact at a government level in the countries that the offshore companies operate. This may be through increased taxes on Australian companies i.e Coal and Iron Ore which in turn would negatively impact our trade,” he said.

Peter Murdoch MCIPS, Procurement Manager at Santos, has stated that “if a Company locates offshore then by definition they are no longer resident here for tax purposes... and therefore Australia isn’t in a position to tax them... unless it applies import duties for products coming in.”

“However, isn’t there a risk that wrapping the economy in cotton wool will not serve Australians interests in the long term? The economy will need to continue to develop in areas of engineering, design, quality or highly efficient top end manufacturing in order to maintain a competitive industrial advantage,” he said. 

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