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Here's how it works

1. Set up a shelf company in Singapore where the corporate tax rate is 13% less than in Australia.
2. Avoid paying the 30% corporate tax rate in Australia by turning your Australian company into a subsidiary of your Singaporean company.
3. Avoid paying the 17% corporate tax rate in Singapore on profits by loaning that money to your Australian subsidiary.
4. Use that debt incurred from the loan repayments back to yourself as a tax deduction in Australia.
5. Use a modest portion of the money you've saved from this scam to lobby/intimidate the Federal Government to allow you to keep doing it.

Note: These options are only available to corporations who wish to reduce their tax bill, not to consumers who wish to reduce their energy bill.

http://www.canberratimes.com.au/federal-politics/political-news/energy-c...

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