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Australian tax office names names in multinational avoidance row

Of over 1,500 largely foreign-owned firms which posted total earnings over A$100m in 2014, over a third paid no tax
Of over 1,500 largely foreign-owned firms which posted total earnings over A$100m in 2014, over a third paid no tax

Australia took the unprecedented step of publishing the records of hundreds of firms, including Google and Apple, which show they paid little or no tax on their in-country earnings. 

Of over 1,500 largely foreign-owned companies which reported total earnings over A$100m in 2014, more than a third paid no tax, the Australian Taxation Office data showed.

Australia has led efforts at the Group of 20 rich nations to close tax loopholes.

Commissioner of Taxation Chris Jordan criticised certain foreign-owned companies for being "overly aggressive in the way they structure their operations". 

"We will continue to challenge the more aggressive arrangements to show that we are resolute about ensuring companies are not unreasonably playing on the edge. If they do, they can expect to be challenged," he said in a statement. 

The ATO has the powers to release such sensitive corporate information but has never done so until now.

Among the offshore firms that paid no tax on their Australian earnings were US oil services firm Halliburton, US hotel chain Hilton Worldwide Holdings, US aviation giant Boeing, its UK rival BAE Systems, beer giant SABMiller, Japanese car maker Honda and US car maker Ford. 

For all but SABMiller, the zero annual tax payment came despite reporting taxable income. SABMiller generated no taxable income despite $2 billion total earnings. 

Apple paid $74m tax on its $247m taxable income, in line with the country's 30% tax rate but a small fraction of the total $6.1 billion it made in Australia that year. 

Google paid $9m tax on $91m in taxable income, a third of the company tax rate and dwarfed by the $357m it made. 

A BAE Systems spokeswoman said the company paid no income tax that year because of losses it incurred developing a new surveillance system for the Royal Australian Air Force.

The company showed full details of its tax arrangements to the ATO to ensure it was compliant. 

A Hilton spokeswoman declined comment, while spokespeople for Apple, Google, Halliburton, SABMiller, Ford and Honda did not respond to requests for comment. 

The disclosure will also likely embarrass the companies, many of which rely on squeaky clean images to convince customers to buy their products. 

It also could build public support for an overhaul to the company tax system after a high-profile government inquiry into corporate tax avoidance earlier this year saw some tense clashes between executives and lawmakers.