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Dick Smith's taxes

"The Australian" features a story today about one of Australia's best-known millionaires - entrepreneur Dick Smith.

http://www.theaustralian.news.com.au/story/0,25197,23898073-2702,00...

Apparently, the man behind Dick Smith Electronics and the Dick Smith range of true-blue Australian made food products (who's also partial to ballooning adventures) has been sent a letter by the Tax Office, advising him that his tax affairs will be under closer scrutiny.

Dick's not taking this lying down, saying he's always been proud to pay a lot of tax (approx $1 million per year), but now his opinion's changed, and he can see the merit in Kerry Packer's infamous 1991 remark that "if anybody in this country doesn't minimise their tax, they want their heads read".

Dick says government mis-spending of taxpayers' money may make him look at more tax minimisation schemes - which he claims he hasn't embraced before.

So what do you think? Is Dick Smith right to give the Tax Office a hard time? Is it the Tax Office's fault that governments of the day don't always spend the money in the best possible way?

Should the wealthy pay more in tax - or do you support any moves they make to minimise, in the same way that you and I do?

Tags: tax

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Replies to This Discussion

Permalink Reply by AlRow on June 22, 2008 at 11:33am

Kerry Packer was right and, if I was in the same postion as him, I would also have a phalanx of accountants and lawyers ensuring I paid the bare (legal) minimum.

Dick Smith has the same rights which he should exercise, if he hasn't, he is not the businessman I thought he was.

However, I don't see his connection between the ATO checking on him and government misspending of taxpayers money. All the ATO does is collect the cash for the government, they do not control expenditure.

Maybe Don Dick should start aiming his lance at the correct windmill. Actually, maybe he has got something else in the pipeline and just needed to get his name in the papers. Let's face it, it is a long time since we saw him spread all over the front page (there is a report of a large piece of the antarctic ice shelf breaking away. Maybe he going to tow it into Sydney Harbour and save Australia from the drought (Maybe not...He has already pulled that stunt))

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Permalink Reply by JG on June 22, 2008 at 1:49pm

C'mon.

If you don't think people who've annoyed the bureaucracy haven't come in for "extra attention" before now then I've got a bridge to sell you.

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Permalink Reply by AlRow on June 22, 2008 at 4:48pm

And, no doubt, you want me to believe that it is 100,000 tons of granite called Tower Bridge??? That being the case there are many tons of cast iron the French want to get rid... you may be interested in
Please, please no conspiracy theories

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Permalink Reply by JG on June 22, 2008 at 5:06pm

Never heard of Nick Petroulias? (To cite just one example of the ATO being not entirely the paragon of virtue we might wish it to be).

We're not talking about conspiracy theories, we're talking about what prompted Dick Smith's comments.

It may well be a run-of-the-mill check. But the other sort most certainly happen.

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Permalink Reply by AlRow on June 22, 2008 at 5:46pm

Of course I have heard of him...a brief discription of him would be a dishonest bastard who was trying to line his own pockets by setting up "bottom of the harbour" type schemes using his knowledge of the tax system.
I don't believe he was being urged on by the ATO in an attempt to get big business

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Permalink Reply by JG on June 22, 2008 at 6:46pm

well done.

Now consider which windmill Dick is tilting at.

Not necessarily the wrong one. Having worked in Canberra for a long time and having had many professional dealings with the highest levels of the ATO I would not be surprised if he turned out to be right.

On the other hand that's certainly not a sure thing.

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Permalink Reply by Mary M on June 23, 2008 at 11:26am

And has Dick Smith annoyed anyone "important" recently? (Apart from me, of course)

Mary M

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Permalink Reply by JG on June 23, 2008 at 11:49am

He's always making ~~a pest of himself~~ himself heard on public policy issues.

Less so with the new Government as with the public service which has carried on largely un-changed.

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Permalink Reply by AlRow on June 23, 2008 at 12:57pm

Yes indeed just like a duly elected member of parliament
Although he didn't do a bad job when he ran CASA

Permalink Reply by Georgina on July 22, 2008 at 4:24pm

Why is Dick Smith under more scrutiny from the ATO? Have they found something that he didn't or forgot to declare? $1 million dollars tax each year is a fortune to the government (I think). Yeah I think he, as well as everybody else has a God given right to mimimize their tax expenses legally. I totally agree that anybody who dosen't do this should have their head read and I am nowhere near or ever will be that rich in my life to worry about paying so much tax.

I am sure that there are lots of rich or not so rich people out there who try to avoid paying tax but I am also sure that the tax office is equally as greedy to grab as much money out of people as anyone else, and they pounce hard on anyone who makes a mistake.

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Permalink Reply by Miffy on July 24, 2008 at 12:12pm

Hear, hear Georgina. Why would you want to pay more tax than necessary?? I think that the ATO is always on the look out for those trying to evade tax (as opposed to avoiding tax, which is OK), it's just the the media beats it up whenever it has anything to do with a public figure. Helps sell the papers, but it doesn't mean he has done anything wrong. In fact, quite the opposite - he has created employment for thousands, helped the economy along, and paid a lot of tax.

I'm not sure that they're really out to get anyone though. Just those who are purposely evading tax. I must say that in my dealings with the ATO they've been nothing but nice. Yes, nice. Surprisingly nice. When I made a mistake on my return I spoke to a few people and fixed it up. And when I overpaid and tried to get it back they moved heaven and earth to get it back for me. Perhaps it was partly due to my attitude towards them - a crippling fear that they would take me down - which is in stark contrast to the way I act towards other customer service people at Telstra, Optus, the banks, etc. ;)