RMIT University tax expert Professor Sinclair Davidson explained how the round tripping mechanism was perfectly legal: “When you buy a Microsoft product, the intellectual property is registered in Singapore. The Australian arm of the company then pays a royalty fee to the Singapore holding company, effectively transferring the profit to a country where the tax rate is half that of Australia.’’
Google Australia’s managing director Maile Carnegie had nothing to hide too. She said: “This is the way the global tax system works," confirming that the company’s lucrative advertising revenue was booked in Singapore but could not say how much, citing US disclosure laws.
With all those juicy numbers fattening up the balance sheets, and minimal direct or indirect overhead costs incurred in country, shouldn't our productivity rate be shooting up the roof?
Will the guy who debunked the 450,000 figure of worshippers who filed past the casket in 4 days please fire up your calculator again?