Hi all,
I heard a rumour from a high level employee working in an oil refinery in Australia that the refinery buys thier oil from thier overseas oil producers part of the business at USD$100+ per barrel (even though it is USD$60 spot price atm) to reduce profits in Australia and keep taxes low making refining in Australia look like a marginal business which in turn puts upward pressure on fuel prices to consumers.
How can we verify this and stop the price gouge?
"How can we verify this and stop the price gouge?"
You can't and you can't.
Most big companies/industries do some sort of transfer pricing.
Oil is such a necessity and the business is done in so much secrecy, that no govt or international body would seriously take them on.
Well if they really did this then the ATO could recognise it as tax manipulation and require them to stop it and cough up. The problem for the oil companies is that oil is fungible and the ATO can see if they are overpaying in one location to shift profits. Companies using licensing fees to shift profits have it easier, since there is little comparison that can be made.
Of course, that would tend to require a government that wasn't in the pocket of big business…
Most international companies (not just oil) do this. They make a e.g. $10m profit in Australia, but 'coincidentally' the trademark licensing fee for the use of their logo goes up by $10m that they must pay to their Virgin Islands based parent company. So, sadly, the Australian company makes no profit and so pays no tax.
Of course, the Virgin Islands company makes an extra $10m, but, also sadly, they don't have corporate taxes there so the company doesn't pay any tax.
How can we verify this and stop the price gouge?
Stop voting in corporate stooges like Malcom Turnbull who makes it clear by his actions that he's a Telstra employee. Actually make that anybody from Liberal or Labour because they are run by corporations whilst the braindead population which apparently makes all it's decisions based on listening to what comes out of the scum's mouth instead of what they actually do.
Malcom Turnbull who makes it clear by his actions that he's a Telstra employee
Seriously dude, you need a reality check of your political views from "gummints" and so on.
You make some pretty unbelievable statements.
Maybe spend more time educating yourself rather than just pushing the BS…
I'm not going to buy petrol from Telstra or Malcolm Turnbull.
Malcom Turnbull who makes it clear by his actions that he's a Telstra employee
True story. I had a phone line fault repaired by Malcolm and his press entourage.
Caltex certainly cannot do this as they have no international business. Im sure that the only other refinery is Kwinana? That's owned and operated by BP.
Only way you are going to win against the oil companies is to stop using their product. Buy a bicycle, bus/train ticket or build/buy an electric car. Otherwise suck it up, the ACCC hasn't made any headway what difference are you going to make?
I can reveal that BP are not the only ones with international parent company that produces oil. Mobil has exxonmobil, Shell(now owned by Viva energy) has Vitol.
Who gave you permission to reveal that!?
Not sure what the point of this thread is.
The methods are legal for tax minimisation.
Every company does this, not just oil giants.
It is still a big problem, and not well understood by the general public. More pressure on governments around the world to head it off is welcome.
Perhaps in response to concerns about perceived inequitable petrol pricing, and allegations of transfer pricing by foreign oil companies to limit their tax liabilities in Australia, an Australian Motorists Petrol Company should be formed.
Just stop well-known but seemingly impossible to prove industry collusion, century old international geopolitical games and decades worth of tax loopholes put in place by well funded lobby groups.
Oil companies are built on price and supply manipulation.