HOLDEN'S HEREAFTER

[panhead]

Yep...that or our spineless government forcing GM to hand over the Holden IP, brand and proving ground to the public coffers for future use. We paid a lot of money in subsidies...GM US owes us that much!

GM provided a lot of people with jobs and a living in return for those subsidies and that's how these businesses work globally, manufacturing and governments walking hand in hand.

GM isn't on its own with letting Holden and Australian manufacturing down, the government played a very important role as well.

GM Holden misread the market and it's customers walked away in droves and the government misread GM and without funding, GM saw no sense in being here.

Simplistic explanation I know but it's the easy way to describe what happened.




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[Anthony121]

Yep...that or our spineless government forcing GM to hand over the Holden IP, brand and proving ground to the public coffers for future use. We paid a lot of money in subsidies...GM US owes us that much!

GM Holden did invest a lot in Australia. It wasn't all about taking subsidy's offshore. they invested a lot of money for short time producing goods in this country after big investments in 2003-2006

 

[Forg]

View attachment 209559

Ah yes, $6.1b revenue, $12.59 profit reported to the ATO after $6.099b shipped back to Detroit for IP/licencing ...

 

[Skylarking]

I’d say the government monies given to Holden were meant to be spent here, not taken back to Detroit. So i’d classify it as theft and put out an international warrant for the arrest of a few of the GM heads. Then start the negotiation to get the money back (preferable) or take the IP in lieu of a payback (Nah, it’s worthless now).

Sovereign risk is overrated

 

[Skylarking]

$6100M revenue and only $100M tax = 1.6% tax rate.

That’s piss poor and it’s also ignoring the syphoning off of “ip” money’s to some tax free jurisdiction while ignoring how much is directly gifted via grants and payments by the aussie government.

 

[VS 5.0]

$6100M revenue and only $100M tax = 1.6% tax rate.

That’s piss poor and it’s also ignoring the syphoning off of “ip” money’s to some tax free jurisdiction while ignoring how much is directly gifted via grants and payments by the aussie government.

I have seen the financials of many businesses where, on face value, the profit doesn't appear to relate to revenue however when true COGS and other operating costs are taken into account (exclusive of the IP and other accounting tricks) it all becomes clear.

The business I work with has large revenue but also very large COGS relative to that revenue due to the type of products that we sell.

Headline numbers don't show these intricacies but make great fodder for the media.

 

[Forg]

Headline numbers don't show these intricacies but make great fodder for the media.

$6.1b turnover vs $280m profit (which is what they were taxed on) doesn't tell you much, I agree ... and you don't calculate tax on turnover; but I thought there were known to be pretty massive payments for "licencing" and "use of IP rights" going back to HO, which would have been a cost in this country & hence reduced the taxable profit?

Making cars is an expensive exercise though, you'd expect turnover to be much higher than profit.

 

[VS 5.0]

but I thought there were known to be pretty massive payments for "licencing" and "use of IP rights" going back to HO

No doubt there is....and I in know way support or defend this practice.

Govt needs to crack down on it with all cross border entities.

 

[Skylarking]

^ to me, it seems if COGS is such that no money is truely made, then the business should fold... Yet many businesses are artificially structured so they make no money. They remain borderline viable for decades, all the while the foriegn owner just gets richer.

Why the tax office doent take a much harder line on such accounting and corporate structure, which is against tax law, probably says all there needs to be said about who actually runs a country (cause it aint the politicians or the general public).

Wish i could apply such COGS and IP tax tricks to my wage and only pay 1.6% As is, i'm farcked and avarage 28 time more

 

[abuch47]

because then they move offshore. the market is so small we will always have to bend to their rules to have any globals stay here.