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Here are the top tech companies that paid no tax in Australia last year

Here are the top tech companies that paid no tax in Australia last year

Vendors, distributors, integrators and resellers all make an appearance on this year’s list

Credit: Dreamstime

IBM A/NZ Holdings, SAP Australia, Schneider Electric Australia Holdings and Atlassian Australia (1) are among the big tech companies operating in the local market that paid no tax in 2017-18 despite reporting millions, sometimes billions in total income. 

This is according to data collated by the Australian Taxation Office (ATO) and included in its latest annual Corporate tax transparency report for the 2017–18 income year, published on 12 December.

This is the fifth annual report on corporate tax transparency by the ATO. It is designed to inform the public debate about tax policy, particularly in relation to the corporate tax system.

The latest report is based on the 2017–18 income tax returns of some of the largest corporate entities operating in Australia, specifically Australian public and foreign-owned entities with total income of $100 million or more and Australian-owned resident private entities with total income of $200 million or more.

In terms of the local channel landscape, some vendors, distributors, integrators and resellers make an appearance on this year’s list, and are among those organisations that, according to the ATO, paid no tax in the 2017-18 reporting year.

However, as the ATO notes, it should be kept in mind that the aggregate figures included in the list cannot reflect the complexity of the tax system, the relationships between entities, the calculations behind the numbers or the extent and nature of any ATO activity.

“It is important to remember that corporate income tax is payable on profits, not gross income; in any given year, a significant percentage of even the largest companies make losses, not just for tax purposes, but also for accounting purposes; [and] it reflects the tax returns as lodged, and does not reflect subsequent ATO compliance activity,” the ATO has said previously in relation to its report.

With that in mind, here are the top tech players in Australia that paid no tax last year, in alphabetical order:

  • ASG Group Ltd

    • Total income: $400.5 million

    • Taxable income: zero

    • Tax payable: zero

  • Atlassian Australia 1 Pty Ltd

    • Total income: $1 billion

    • Taxable income: $138 million

    • Tax payable: zero

  • Capgemini Australia Pty Ltd

    • Total income: $320.9 million

    • Taxable income: zero

    • Tax payable: zero

  • Datacom Australia Holdings Pty Ltd

    • Total income: $505 million

    • Taxable income: zero

    • Tax payable: zero

  • Hills Ltd

    • Total income: $253.2 million

    • Taxable income: zero

    • Tax payable: zero

  • IBM A/NZ Holdings Pty Ltd

    • Total income: $3 billion

    • Taxable income: $22.9 million

    • Tax payable: zero

  • Kordia Pty Ltd

    • Total income: $107.1 million

    • Taxable income: zero

    • Tax payable: zero

  • MYOB Group Ltd

    • Total income: $366.8 million

    • Taxable income: $114.3 million

    • Tax payable: zero

  • NBN Co Ltd

    • Total income: $2 billion

    • Taxable income: Zero

    • Tax payable: zero

  • NEC Australia Pty Ltd

    • Total income $436 million

    • Taxable income: Zero

    • Tax payable: Zero

  • Netcomm Wireless Ltd

    • Total income: $176.6 million

    • Taxable income: $18 million

    • Tax payable: Zero

  • NextDC Ltd

    • Total income: $162.1 million

    • Taxable income: Zero

    • Tax payable: Zero

  • NTT Australia Pty Ltd

    • Total income: $198.9 million

    • Taxable income: Zero

    • Tax payable: Zero

  • OfficeMax International Pty Ltd

    • Total income: $306.6 million

    • Taxable income: Zero

    • Tax payable: Zero

  • Ricoh Australia Pty Ltd

    • Total income: $393.5 million

    • Taxable income: $812,713

    • Tax payable: Zero

  • SAP Australia Pty Limited

    • Total income: $1.1 billion

    • Taxable income: Zero

    • Tax payable: Zero

  • Schneider Electric Australia Holdings Pty Ltd

    • Total revenue: $1.3 billion

    • Taxable income: $16.2 million

    • Tax payable: Zero

  • Sony Australia Limited Ltd

    • Total income: $1.3 billion

    • Taxable income: Zero

    • Tax payable: Zero

  • Speedcast International Ltd

    • Total income: $304.8 million

    • Taxable income: Zero

    • Tax payable: Zero

  • Tech Data (ANZ) Pty Ltd

    • Total income: $441.2 million

    • Taxable income: Zero

    • Tax payable: Zero

  • Toshiba (Australia) Pty Ltd

    • Total income: $236.6 million

    • Taxable income: Zero

    • Tax payable: Zero

  • Tower Software Engineering Pty Ltd (HP Inc) -- Tower Software Engineering is a holding company for HP PPS Australia Pty Ltd, which is itself a holding company for HP Inc (HP acquired Tower Software in 2008).

    • Total income: $1.6 billion

    • Taxable income: Zero

    • Tax payable: Zero

  • Trend Micro Australia Pty Ltd

    • Total income $132.2 million

    • Taxable income: $26.2 million

    • Tax payable: Zero

  • Unisys Australia Pty Ltd

    • Total income: $242.4 million

    • Taxable income: $2.1 million

    • Tax payable: Zero

  • Verizon Australia Pty Ltd

    • Total income: $174.6 million

    • Taxable income: Zero

    • Tax payable: Zero

  • Vodafone Hutchison Australia Pty Ltd

    • Total income: $3.5 billion

    • Taxable income: Zero

    • Tax payable: Zero

  • Winc Australia Holdings Pty Ltd

    • Total income: $215.3 million

    • Taxable income: Zero

    • Tax payable: Zero

Reporting for 2016-17 (information was not available as of the cut-off date of the previous annual report)

  • CSG Ltd

    • Total income: $131.4 million

    • Taxable income: Zero

    • Tax payable: Zero

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More about ANZASG GroupAtlassianAustraliaAustralian Taxation OfficeCapgeminiCSGDatacomHillsHPHP IncHutchisonIBMKordiaMYOBNBN CoNECNEC AustraliaNTT AustraliaOfficeMaxRicoh AustraliaSAPSAP AustraliaSchneider ElectricSonySpeedcastTech DataToshibaTower Software EngineeringTrend MicroTrend Micro AustraliaUnisys AustraliaVerizonVodafone

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