Michael West (SMH Business Editor) published a piece on Macquarie Airports last Sunday. It showed how the Danes, recieving no corporate tax from their airport (run by MAp) were madder than the prince of Denmark. Sydney Airport too, is funded to make no money, but to pay a heavy interest bill to an associated offshore Macquarie entity.
Well its a wonder our government doesnt learn some innovative policy also, like getting round tax loopholes? Are we, the tax paying public going to be afraid of extracting a just corporate tax from as powerful an entity as Macquarie? Or cow over as governments do, (consider Kevin 07, dead 11)?
Well my proposal goes towards making loan interest taxable. It might eventually be part of the goods and services tax economy.
Consider, were there a levy of 10% on loan interest (adjusted/moderated for inflation/cpi/reserve bank cash rate), with most (90%?) of the moneys raised going to subsidise losses (say up to 33%?) on defaulted and failed loans then we would be reducing the risk and (likely consecutively) the interest rates asked.
It could even be a more hefty charge and have a balancing clause where the company or entity has paid fair corporate tax.