Social Affairs reporter Rick Morton is reporting the Australian arm of Bupa is facing an audit over “cross-border transactions and operations” as the Australian Tax Office (ATO) warns it has “concerns over the financing arrangements” of certain companies that could be used to minimise profits and tax.
The company tax rate in the UK – where Bupa is based – is 19%, but in Australia they face a 30% tax bill.
In its submission to the recent Senate inquiry into the tax practices of for-profit providers – instigated by a Tax Justice Network report commissioned by the Australian Midwifery & Nursing Federation (ANMF) – the ATO said it was “reviewing the application of transfer pricing rules to financing arrangements of entities in the aged-care industry”.
Bupa has denied any wrongdoing however. “While the issues are ongoing and the future outcomes remain uncertain, the (Bupa) Group considers the positions it has adopted are in accordance with the tax law and intends to defend its position with respect to these matters,” it states in its latest accounts.
A reminder that for-profit aged care providers are still in the ATO’s sights.
