PwC Australia announces tax position for the firm
PwC Australia said its partners pay an average tax rate of 37 per cent on the profits of the firm, making it a significant contributor to Australia’s economy.
PwC Australia announced on Wednesday its tax position for the firm, including tax paid by its partners and staff, following scrutiny from a parliamentary committee.
CEO of PwC Luke Sayers said the firm was proud of the role it plays in Australia’s tax system, both as tax advisers and taxpayers, with partners paying an average tax rate of 37 per cent on the profits of the firm.
"Our firm turns over in excess of $2 billion in revenue annually and employs more than 8,000 people, making us a significant contributor to Australia’s economy and tax system," he said.
According to Mr Sayers, over the last three years, PwC, its partners and its employees, have contributed more than $1.7 billion in total taxes.
"In the 2018 financial year alone, we contributed more than $620 million in taxes. This total tax contribution includes taxes paid on partner income, fringe benefits tax, payroll tax, stamp duty as well as taxes collected on behalf of the government such as GST and staff PAYG.
"Importantly, because we are an Australian partnership, all of our profits are taxed in Australia," Mr Sayers said.
There has been increasing interest in the tax position of the big four professional services firms, including a recent request of the ATO by the Senate economics legislation committee. The Tax Office recently revealed that big four partners earned a collective $7.6 billion in 2017, alongside $2 billion in taxable income.
"We regularly engage with the ATO on our tax affairs to ensure we are in compliance with the ATO's principles and guidance regarding the taxation of partnerships," Mr Sayers said.
"We take our tax affairs extremely seriously and we have robust tax compliance policies and procedures in place governing the tax affairs of our partners."