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Friday, February 1, 2013
On Persuasion, by Dr. Ken Bugajski
The Bookish Catholics Resident Professor is back again! We welcome Dr. Ken Bugajski, Associate Professor of English at the University of St. Francis in Fort Wayne, Indiana. He shares his thoughts with us as we begin reading Persuasion by Jane Austen.
Hello again, everyone. It is great to be back with you this month to talk about Jane Austen. I should say from the beginning that I know Bookish Catholics has a number of Jane Austen devotees, and so I hope I don't waste your time telling you things you already know.
Where to start? Well, I may as well tell you that Persuasion is my favorite Jane Austen novel. I know that Pride and Prejudice is the choice for most people--and it is a wonderful book--but I have always liked Persuasion better, even though the ending has some flaws. No spoilers--I mean only that because Austen passed away, the last chapter seems not to have been fully revised. To me, the end lacks the polish of her other prose. Even so, Persuasion remains my favorite, and for my money, it contains one of the best literary love letters I know of, even better--yes, I will say it--than Darcy's to Lizzie.
As always for Austen, marriage is of primary concern, and I think of all Austen's novels, Persuasion considers marriage the most. Through our single heroine, Anne, Austen shows us the difficulty and challenge of finding the right person to marry, but the novel also presents a number of different models for what a married couple can be.
So what can marriage be like? First up are Charles and Mary Musgrove, who seem to present a model that is less than ideal. Charles is dutiful but distant from Mary. Mary cares for their children to the extent that she can do so without their displacing herself as the center of attention. As Austen says, Charles and Mary "might pass for a happy couple," but once we spend some time with them, we see below that surface level. They often do not agree nor do they communicate about those differences; both resort to passive/aggressive behavior towards the other.
The Harvilles, who we meet in chapter 11, exemplify another type of marriage, and perhaps they represent what could have become of Anne and Wentworth had they been married when Anne was 19. They seem happy enough, but their house is always stretched to the limit in activity and money. When Anne and the others come to visit them in Lyme, for example, Benwick has to move out because there is not enough space for him.
Captain Benwick, who we also meet in Lyme, although he is single, also shows a third possibility for Anne. Benwick has lost the love of his life, and we can interpret him, perhaps, as a potential inverse of Anne. Had she and Wentworth married and Wentworth continued his naval career, perhaps Anne would have lost her love in the line of duty as Benwick has lost his love due to illness. Austen goes out her way to note that Anne and Benwick are similar to one another—even Anne recognizes it—and so here is another version of what married life might have been like for our heroine.
The first married couple we meet, the Admiral and Mrs. Croft, provide a final possibility for Anne (the Crofts are, incidentally, my favorite literary married couple).* The Crofts are always together, and Austen goes on at length the emphasize this. We learn in chapter 4, for example, that the Crofts have been travelling together and have just returned to England. Chapter 8 features a long discussion of whether wives of sailors should be allowed on naval ships, and Mrs. Croft expresses definite opinions about this matter. At one point, Austen's describes the Crofts—who have been married for a long time—as acting "in a way not endurable to a third person." Clearly the romance is alive in their relationship.
So, as Anne navigates her life—the move from Kellynch, seeing Captain Wentworth again, meeting Benwick—she encounters different examples of what married life can look like. Austen puts Anne in the position of being able to see how differently relationships can function and so that she can determine what she herself might wish.
*The Crofts are also responsible for one of my favorite scenes in all of the novels I know. But I don't want to spoil that for you!
15 comments:
I love this, Ken! Thank you so much. I've never lined up all the marriages in Persuasion like this before, and it is very interesting. It will give me a new perspective as I reread this favorite.ReplyDelete
The Crofts! THE CROFTS!!! Long live the Crofts!!! Yes, my favorite Jane Austen couple of all time. And unlike ANY other couple she wrote about in any of her novels. I think that, as Jane Austen wrote this at the end of her life, they were her heart's desire. If she could have written her own story, she would have been one half of that couple.
Keep the writing coming Ken!!Replies
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Oh, thank you for this! Persuasion is my favorite Austen novel and the Crofts are my favorite couple, also! I'm so excited to hear a scholar side with Persuasion over Pride and Prejudice, although the former is a great work, also. I agree with what Lauren wrote above. The Crofts are portrayed with love and a wistfulness and I love them as much as Austen apparently did.ReplyDelete
Of all Austen heroines, I relate most to Anne and Darcy comes in third for me when it comes to Austen men, after Wentworth and Knightley.
I think Persuasion is the most passionate Austen novel, in its tone, the depth of the characters, descriptions of place in relation to character exposition, and the plot, not just in terms of passion as people normally think of as related to romance. That's why I love the 2007 movie adaptation, because although small liberties are taken and every single detail of the novel is not portrayed, the movie captures the breathless feel and passionate strength of the novel. I think I'm in the minority on this position among my local lovely Janeites, though! Although I will concede the portrayal of the Crofts in the earlier adaptation is lovely.Replies
This comment has been removed by the author.ReplyDelete
Terri, I have a colleague here who also likes Persuasion best. His wife strongly favors P&P, so you can imagine that has resulted in a number of discussions over dinner and a glass of wine!ReplyDelete
I, too, like Anne and Wentworth more than Darcy and Lizzie (though, of course, Darcy and Lizzie are wonderful). Anne and Wentworth are a bit older, and that is part of what I like about them. That age difference (between Anne & Wentworth and Darcy & Lizzie) has, I think, some important thematic implications for the novel--and those themes are why I like Persuasion over P&P. But....that's a conversation for a time when we're closer to February 18, and we're near the end of the book. :)
As usual...I am the member with the least knowledge of any of these books and yes, I realize this will be shocking to many of you, but this is my first Jane Austen novel EVER. I was a little nervous to even begin trying to read this book (I think I mentioned this to you Lauren). I even listened to the first LibroVox recording and while I pride myself on being able to multi-task, listening to the book and doing the dishes proved too difficult for my mind to fully grasp Jane Austen. I digress....what I am trying to say is this post piqued my interest to the point of trying again and actually sitting and listening and even eventually reading Persuasion. I am loving it so far and God willing, I hope to have it finished by Monday's meeting! So thank you, Dr. Bugajski, for lighting a fire under me and although I can't claim to be the Jane Austen groupie some of these gals are - I am definitely becoming a fan!ReplyDelete
I find myself wishing and wishing that we could back up 8 years and meet Anne and Frederick when they had first been engaged. I also found myself wondering if my husband and I had been thwarted in our relationship (which at the hand of a few well-intentioned family members, it might have happened) how we would be if we had re-connected years later. It amazes me that both Anne and Frederick were able to kindle that love for one another, and maintain their connection (even if it was not affectionate at first the second time around). The subtleties in the novel showing how well they knew each other after so much time had passed, almost if they had been married all along in their hearts. I have not read all of Austen's works, but I really admire how Persuasion stands out. Coming from someone who always got picked last in kickball, it's great to root for a Heroine who finally gets her happy ending!ReplyDelete
Cecilia, if my post helped you to give Austen another shot, then that makes me very happy! Even if you don't become an Austen groupie, it is great that you gave it a second try. :)ReplyDelete
And Julia, a number of the reasons why you like Persuasion are very similar to why I like it. This weekend, I am going to write one last blog post on that very subject, so that is on its way!
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Early on the evening of August 24, a tall, rangy man wearing a black suit swaggered into a conference room on the campus of the University of Texas at Tyler. He was there to debate the merits, or lack thereof, of a curriculum system for Texas public schools known as CSCOPE. You might think that this event would have trouble drawing a crowd, especially on a night when the Cowboys were playing a preseason football game on national television. But CSCOPE is a hot topic, especially among parents whose taste in politics leans toward tea. Demonized as a leftist plot to infiltrate our schools and brainwash youngsters with cultural relativism and creeping socialism, it has become one of the red-meat issues of the inaugural days of the 2014 campaign cycle. And nobody has played the controversy to better advantage, so far, than the man in the black suit, state senator Dan Patrick. You might even say he created it.
Patrick is the chair of the Senate Education Committee, a position conferred on him in advance of the last legislative session by the Senate's presiding officer, Lieutenant Governor David Dewhurst. Bestowing such a prize was Dewhurst's clumsy way of trying to hold an enemy close, but it backfired spectacularly. Patrick used his chairmanship to win over suburban parents with sweeping reforms that will limit the number of standardized tests and to whip up hard-core conservatives with a series of hearings on CSCOPE; conveniently, this raised his profile among the two key sectors of the primary electorate that he would need in order to challenge the lieutenant governor. At Dewhurst's lowest moment this summer, just after Wendy Davis's dramatic filibuster had turned his chamber into a launchpad for her political career, Patrick announced he was running to replace his onetime benefactor.
His opponent at the Tyler debate, however, was not Dewhurst. It was Thomas Ratliff, the vice chairman of the State Board of Education and one of the state's few remaining openly moderate Republicans. Newspaper reports estimated the crowd for the verbal fisticuffs at around six hundred, evenly divided between both sides. But for Ratliff, who lives in Mount Pleasant, this was home turf. Patrick had shown the ability to assemble a constituency out of thin air, many miles from his home base. And his supporters were agitated. Whenever Patrick made a point, it seemed, someone behind me punctuated it with an "Amen!"—or, when he had just finished summarizing a pernicious CSCOPE lesson plan, "That's anti-American!"
Patrick is trying very hard to position himself as the captain of these passionate ranks. He is co-chairman of the Legislature's Tea Party Caucus, he has a nose for issues that will rally the troops, and like Ted Cruz and Rick Perry, he thrives in political fights that reward the brazen rightward thrust. For Dewhurst, he is a nightmare opponent, a grotesque rehash of Cruz, the man who spoiled the lieutenant governor's well-laid plan to win a U.S. Senate seat in 2012. In that race Dewhurst began as a heavy favorite against a political unknown. He was undone partly by his own consultants, who spent oodles and oodles of dollars on negative television ads that raised Cruz's name identification; partly by the misfortune of a redistricting fight that delayed the party primary into the summer, when insurgent candidates like Cruz tend to get more traction; and partly by his own difficulty fitting in to the political moment. Dewhurst's trouble is that he is a mainstream conservative in a state whose Republican party is leaning more and more to the right, a situation that leaves him continually reaching for an ideological mooring. Getting issues like abortion taken up in the summer's special sessions was supposed to help him (in a letter to Perry, he practically begged the governor to add such legislation to the call), but just ask Wendy Davis how that worked out.
In this sense, Dewhurst is a tragic figure—a smart, decent, reasonable fellow with a genuine feel for policy, but one whose many virtues are not those that his party's primary electorate is lately in the habit of rewarding. Patrick is not the only one who smells blood in the water. Commissioner of agriculture Todd Staples and land commissioner Jerry Patterson have also entered the race, the former with an impressive campaign fund and coif, the latter with an appealing frankness on the campaign trail. Perhaps most notable is the fact that in the modern era, no incumbent has been challenged by three current officeholders from within his own party, a scenario that speaks volumes about Dewhurst's perceived weaknesses.
Nonetheless, the lieutenant governor enters the race with ample money and the core of a constituency—call it the business community. Despite Dewhurst's efforts to remake himself as something more extreme, he's an establishment guy, and the voters he can count on are his party's more moderate, pragmatic members. The question that has to be asked, however, is whether the Texas GOP has come to the point where such voters no longer wield any clout. Perry's destruction of Kay Bailey Hutchison in 2010 was a pretty strong indication that power within the party had shifted further to the right. Legislative races that year and in 2012 offered more evidence of this, as did Dewhurst's loss to Cruz. Should Patrick manage to vanquish the incumbent, the question will be definitively answered.
And the answer will have tremendous consequences—not just for the direction of the party but also, possibly, for the future of the Texas Senate. Dewhurst, Staples, and Patterson represent the old guard (both Staples and Patterson previously served in the Senate); if any of the three were to win, the Senate would likely carry on in its present incarnation—that is, faithful to the long-established traditions and procedures of the Legislature's upper chamber. If Patrick wins, all bets are off.
NOT SO LONG AGO, the office of lieutenant governor was regarded as the most powerful

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Originally written on Razzball Football | Last updated 11/24/12
CHARLOTTE, NC - NOVEMBER 15: Matt Ryan #2 of the Atlanta Falcons drops back to throw a pass against the Carolina Panthers during their game at Bank of America Stadium on November 15, 2009 in Charlotte, North Carolina. (Photo by Streeter Lecka/Getty Images)
If week 11 in the NFL had one name assigned to it, it would be Houdini. The smoke and mirrors used by Houston, Dallas, Tampa Bay, and Atlanta to magically pull victories out of strait jackets is nothing short of miraculous. The top suicide picks all managed to inch out wins in dramatically late fashion: Matt Ryan throws five interceptions yet the Falcons fly passed the Cardinals for the win in the fourth quarter; the Texans become the first team in NFL history to win while scoring twice in overtime; the Buccaneers squeeze out a victory in overtime after a last second touchdown and two point conversion to send the game into said overtime; and the Cowboys, well, were luckier than a rabbit's foot tripping over a four leaf clover. What could have been the end to many suicide pools now becomes a tighter and more desperate fight to the finish of last man or woman standing. It is no coincidence that three of those four teams came back to win at home. Let's give the fans some credit th...
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REMO tunable djembe sizes run from a top, or drumhead, diameters of 10", 12", 14", 16" and 18" with the 14" size having an edge in popularity because it is not too big to carry conveniently and not too small to lose the big bottom tone. Go bigger if you want more big, boomy bottom or go smaller for a higher range and sweet top tones. Different-sized djembes played together by two or more drummers sound fantastic!
Why Key-Tuned Djembes?
Unlike traditional fixed-head or rope-tuned djembes, REMO has led the field with the great advance of its key-tuned djembe drumheads. You can easily re-tune your REMO djembe to the dominant pitch you prefer and in the rare event that your djembe drumhead becomes worn out or torn, it can be very easily replaced. The REMO newly engineered key-tuned "Contour" lug brackets make tuning more precise than ever.
Remo Djembe Drum Heads vs. Animal Hide Heads
The main business of REMO is making DRUMHEADS. Remo first found great success in making drumheads for acoustic drums, replacing calfskin with highly-specialized polyester film materials that well emulated the warm tone and easy response of calfskin while being far more durable and also, immune to fluctuations of the pitch and tone of the drumhead caused by temperature and humidity changes in the weather.
In the 1980s, REMO began applying this technology to the making of drumheads for world percussion instruments. As they accomplished with drum set heads, REMO has dramatically succeeded in creating authentic-sounding, weatherproof and extremely durable drumheads for djembes.
Remo MONDO™ SKYNDEEP™ drum heads
In 1992, the MONDO™ drumhead (Italian for "world") introduced a new era of innovative drumhead manufacturing, increasing the possibilities for Remo World Percussion. This development provided a pre-shaped drumhead, specific to the new Remo drums that allowed for easy tuning and replacement while creating a very natural and traditional sound. Then later creating the SKYNDEEP™ drumheads for djembes, congas and bongos, REMO had a drumhead that precisely replicated the look and the feel of real animal hide heads, bringing a completely authentic playing experience to their expanding series of djembes. SKYNDEEP™ drumheads are mounted on the REMO Infinity, Designer, Leon Mobley, Apex and the original Key-Tuned Series djembes.
Get your REMO 14" Designer Series Leo Mobley Model Key-Tuned Djembe in Andinkra Finish with the SKYNDEEP® Drum Head! (DJ001424) from Sam Ash Direct today, with fast, free shipping at the guaranteed lowest price. Sam Ash Direct gives you the security of more than 86 years of experience, 24/7 customer support and the Sam Ash Direct 45 day return and 60 day price protection policy. You cannot go wrong!
|Leon Mobley Designed 25x14 (DJ001424)
REMO Designer Series Leon Mobley Model Key-Tuned 14" Djembe in "Andinkra" Finish!
The manufacturer's warranty covers parts for one year and labor for one year from date of purchase. The warranty excludes damage from misuse, abuse, and contains other exclusions.


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BECOME A NURSE Practical Nurse, Professional Nurse, RN-BSN Online, Med Tech, Phlebotomy, Nursing Assistant and CPR! CNA State Testing On-Site Call 941-727-2273 or Suncoastcollege.comMore info Email a friend
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Southwest Baptist University's Computer and Information Sciences Department (CIS) students in the Missouri Future Business Leaders of America-Phi Beta Lambda (FBLA-PBL) placed highly in various categories at the Phi Beta Lambda State Leadership Conference, held April 12-14 in Springfield, Mo. Winning students earned the honor to compete this summer at the National Leadership Conference in Chicago.
SBU had 15 students competing under the direction and support of advisor and CIS instructor Meilani Conley. "I am very proud to sponsor such a talented group of students," Conley said. "Our students work hard to prepare for competition and the results show their strong academic ability. I am blessed and excited to see our students represent SBU FBLA-PBL at the national level."
SBU students who won at the state level and qualified for the national conference include sophomore Regan Katz (Hampton, Iowa) in Information Management and Project Management; junior Matt Shaffer (O'Fallon, Ill.) in Computer Concepts; and sophomore Maura Sturguess (Bolivar, Mo.) in Job Interview.
Other national-qualifying students include sophomore Kelli McNabb (Clever, Mo.) in Mobile Application Development; freshman Emily Woods (Osceola, Mo.) and Kenzie Booker (Carthage, Mo.) in Business Presentation; sophomore Becca Brandon (Alton, Mo.) in Macroeconomics and Microeconomics; junior Steven Harris (Bolivar, Mo.) in Cybersecurity; and junior David Thomas (Monett, Mo.) in Networking Concepts. Harris and Shaffer also qualified in Network Design.
Additional members of the SBU team include junior Ashley Morgan (Granite City, Ill.), sophomore Andy Johnson (Piedmont, Mo.), junior Elisabeth Whaley (Fair Play, Mo.) and junior Ruoxi Zhang (Baoding, China).
Missouri FBLA-PBL is the official Career and Technical Student Organization for Missouri Business Education. Missouri FBLA-PBL is supported and run by the Missouri Department of Elementary and Secondary Education. Missouri's FBLA-PBL membership amounts to nearly 16,000, making it the second largest state chapter in the nation.
SBU's CIS department is home to five full-time faculty, two faculty associates and more than 100 students majoring in computer science, computer information science or web systems and design. The SBU CIS Department is the recipient of multiple national awards each year and among evangelical Christian institutions, SBU is one of the leading producers of software engineers in the United States.
For more information, please contact Dr. Tim DeClue, chair of the CIS department, at (417) 328-1704 or firstname.lastname@example.com.


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by Seven Star
Exhibiting at Sanctuary Cove International Boat Show, MY Seven Star brings a new level of luxury cruises and charters on the Gold Coast departing from Marina Mirage Marina, Main Beach.
MV Seven Star
MY Seven Star closes a gap in the Gold Coast cruising and charter market by providing a high end product offering 3 hour 'Taste of Indulgence' cruises and private charters for corporate functions, group tours, and special occasions aboard this magnificent 98 foot Azimut Leonardo motor yacht 'Seven Star'.
Licensed to carry up to 35 guests plus crew, MY Seven Star combines platinum service with various selections of local cuisine and fine beverages that come together to create an unforgettable luxury experience normally reserved only for the elite.
Owner of MY Seven Star Pty Ltd, Peter Kyriakou said that it was time to fill a major void in the local charter market by providing a top end service that was permanently based on the Gold Coast.
Seven Star
'MY Seven Star provides an experience that is only matched by the best hotels in the world. Now it's available for visitors to experience absolute indulgence, style, and comfort as they soak up the sights of one of the world's best waterways' said Peter.
Enquiries, Dean Marinac, Tel: 0432 734 760. More at www.mysevenstar.com


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by Sheila Lukins
June 2007
reviews (13)
make it again
Coarsely mash the avocados with the lemon juice and cumin in a bowl. Stir in the remaining ingredients.
Nutritional analysis per 1/4 cup: 90 calories, 5 g carbohydrate, 1 g protein, 7 g fat, no cholesterol
Nutritional analysis provided by
Excellent... I used lime instead of lemon and halved the garlic. Yum!


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Wizkid for Home
The WizKid is indispensable when training little boysread more
Wizkid for Restaurants
WizKid reduces floor maintenance by up to 90% in most casesread more
Wizkid for Business
Maintaining a clean environment in the restroom is a top priority.read more
- The WizKid is the restroom mat that stops odors before they start.
- The antimicrobial fibers inhibit the bacteria from growing and spreading.
- The polypropylene fibers allow the urine to air dry after neutralizing the odor causing enzymes.
Customers judge your store by the cleanliness of your bathrooms. If your restroom is in poor shape then it is assumed the rest of your business is in poor shape. WizKid helps keeping your restroom looking cleaner and smelling better. It's like having a restroom attendant 24/7 to clean up where your customers left off.
Latest blog post
Dirty Restrooms at School Create Stress And Anxiety
According to a study from the education industry shows certain perspectives regarding the use of public restrooms.Read More


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Welcome to Maple Grove Commons. 3 Shops, 1 Stop: Maintenance, Tires, and Repairs
Our Mission: To deliver a warm, friendly, and memorable car experience that provides a value to all our guests resulting in the desire to return.
We at Maple Grove Commons specialize in affordable Bridgestone and Firestone tires; American Racing and Ultra custom wheels; diagnostics, brakes, exhaust, steering and suspension. We have a variety of automotive products and repair services that are instrumental to the health of your car. Maple Grove Commons features state-of-the-art equipment so we can better serve your vehicle.
Our automotive maintenance and repair options include brake and tune-up services. Unlike other dealers, Maple Grove Commons features a fast oil change service done right! No appointment necessary. And for those services that take a little longer, we offer free shuttle service or a loaner car if needed. We carry Monroe shocks and struts, Interstate Batteries, and Champ automotive products.
If you're in Maple Grove, Osseo, Minneapolis, or surrounding Twin Cities communities in Minnesota, call or stop in today for quality, affordable service from a trusted local tire dealer. Check out our deals on the coupons page for current discounts and coupons.
At Maple Grove Commons, you'll find passenger and car tires, truck and SUV tires, performance and high-performance tires, and more from proven brands, including Bridgestone, Firestone, and other leading industry names. We also offer a wide variety of top selling wheel brands. Looking to finance? We offer 6 months interest free financing through Firestone. Conveniently located in the Maple Grove and Osseo area, Maple Grove Commons offers tire service, alignment, oil changes, and other valuable services to get your vehicle back on the road. Give us a call at (763) 494-3330 or drop us an email at email@example.com; we will get back to you promptly. Thousands of satisfied customers from Hennepin County, Anoka County, Wright County, and other surrounding areas rely on Maple Grove Commons each year.
Providing quality tires, wheels, and service to the Maple Grove and Osseo area since 1999!
We're located across from Menards and Walgreens,
next to Goodwill and MGM liquor.
- All Brands
|More Featured Light Truck/SUV Tires >>
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Rated 3.8 out of 5 by 379 reviewers.
Rated 2 out of 5 by Upsetman Upset with desk support Hello, When I arrived I had a prepared room. The girl at the desk said that I would get free internet because of my SPG status. she said it would get charged to my bill and then would be removed. The next morning at check out the person told me that I was not a gold member and that the charge would stay. He did not even apologize for the error the girl made the night before. he simply said...You are not a gold member, you do NOT get that privilege. He then failed to give me a copy of my charges. I have now had to contact the SPG services twice to get that receipt of my stay February 21, 2015
Rated 1 out of 5 by sbob rooms smelled of strong perfume/deodorant the room smelled strongly of perfume/deodorant. i actually tried 3 different rooms and all of them smelled of the same strong perfume/deodorant...making it very hard to breathe and sleep. i tried opening the windows, doors and turning on the airconditioning but to no success. you should stop using such strong perfumes/deodorants to mask smells. instead a thoroughly cleaning would be better. December 5, 2014
Rated 4 out of 5 by patanegra001 Good for business trip Good location for business trip, rooms plenty of space and nice bathroom. Negative point is that the reception is charging you €50. If no use of mini bar, they reverse the money!!! Never seen that practice. November 26, 2014
Rated 5 out of 5 by JackieAltoona best if you leave from malpensa The hotel is excellently situated next to the train station when taking the train from Milan Centrale to the airport. Check in was easy even though it was at 10 pm. The staff was courteous andehlpful. The room was very comfortable and the bed was excellent. November 18, 2014
Rated 5 out of 5 by jtravel2 an oasis... It was a welcome relief to enter this hotel from the crowded metro of Milan. Very helpful staff! Comfortable room. Only negative is the huge floorplan, which necessitates much walking within the hotel. Still, can't beat proximity to airport. November 6, 2014
Rated 5 out of 5 by Dottie13 Convenience and quiet I needed a last minute room when I had an over nite stay in Milan after traveling by train all day from Naples. It was raining and I dreaded getting into a cab to find a hotel only to return first thing the next morning for an early flight. Then I saw the "Sheraton Logo". It was like seeing angels to the rescue. It was clean, quiet and comfortable. November 6, 2014
Rated 2 out of 5 by fugu1234 Malpensa Sheraton HOtel The hotel is very old and in need of upgrade. Rooms themselves were fine, but rest of facilities needed more staffing and furniture was chipped/tired. Staff was also not very understanding (maybe cultural/language problem) when there was a hitch in my reservation. They didn't do much to make me feel like everything was going to be alright and I had to pay a higher rate than what I originally booked. Not happy .... And I am former SPG platinum and now gold member. This hotel doesn't cut it. But there is no choice in hotels because it is the only option if you need to stay at the airport and this property, so that might be a problem. November 2, 2014
Rated 4 out of 5 by Fox53 Convenient and priced reasonably. Hotel is quite large and may require lots of walking. Give yourself plenty of time. A couple of the staff in the wine bar and the restaurant should seek work they like. Clearly some of them don't. The economy must be good in Milan because food and beverage service is not worthy of a repeat visit. The wine menu needs revamping. November 1, 2014
Rated 3 out of 5 by MussoMamma An overperfumed room When you step into the room you are met with this nauseatingly perfume smell. The window could not be opened so I could have had some fresh air in the room. I am glad that I am not allergic to perfume! October 27, 2014
Rated 1 out of 5 by ZZSS1947 POOR CUSTOMER RELATIONS We paid in full for our one night stay,10/23/14, two months in advance. We were advised that our room would be ready for check-in by 1-2PM. We traveled, 6 hours from Bolzano to Milan, arrived at 8PM, after a long day of travel, we went to the reservation desk to check-in and were told that our room was NOT READY, and we were told to wait 30-45 min until the room was cleaned. At 8PM in the evening with such a large hotel, that was NOT the proper answer. After speaking with a hotel mgr., they somehow found us an appropriate room and we checked in around 8:30Pm. October 25, 2014
Rated 5 out of 5 by Crutch day room We just got off a flight from the US and wanted to rest for a few hours before a long train ride. The staff could not have been more helpful in booking a day rate room. The morning of October 7th. A young lady and a young man at the front desk I forgot their name, but thank you! October 19, 2014
Rated 4 out of 5 by rolo518 Very Convenient The best thing to be said is that it is connected to airport and train without ever going outside. Unfortunately, the breakfast was 22 euros (with a special discount to 17 euros). Who wants to pay that for breakfast??? We ate in the airport!! AND, I didn't think anyone centered on customer service charged for internet service anymore, but the Sheraton did!!! October 16, 2014
Rated 5 out of 5 by Party4 Exceptional Hospitality The hotel is conveniently located at the Malpensa airport. Airport noise was non existent. We stayed on the club floor and the rooms were spacious and well appointed with upgraded amenities. The club lounge was staffed by friendly and industrious people. The hallways had loose carpet which were of some concern. Overall our stay was highly satisfactory. October 16, 2014
Rated 2 out of 5 by Vandril Close to airport The room was located close to the weight room and there are evidently no restrictions on hours of use. The weights were dropping at 4 am. At about 8 pm we went to the bar which advertises food service for a light evening meal. We waited some time for a waiter, ordered two glasses of wine and then a pannini to share. The panini took over 40 minutes to be served and we needed to remind the waiter to please check on it. It had obviously been sitting in a heated area for sometime as the bread was very crispy all the way through. As to the room itself although roomy and the bed satisfactory it was quite noisy both from the weight room nearby but also the sound of toilets flushing all night long. In addition it was difficult to adjust the room temperature. For a very expensive hotel it was not well maintained, hallways dark, corridors long and room very sparse in terms of furnishing. The only benefit was proximity to the airport which was actually poorly marked. October 11, 2014
Rated 3 out of 5 by Singera Not up to 5 star quality carpets ripped on 2nd floor - tripped on one air conditioning switch 2038 was faulty and dangerous , fell and exposed its bare wires while trying to adjust. Only Small thin quality bath towels supplied. The meal at the bar was poor and overpriced intact our original order was unable to be fulfilled from the menu but it did take 20 minutes for staff to ask us to amend the order. Front desk were very pleasant and the breakfast great. October 9, 2014
Rated 5 out of 5 by EPC1000 Excellent service and facilities I would recommend the Sheraton, they provide excellent service and facilities. October 9, 2014
Rated 4 out of 5 by Chilin excellent location The location of the Sheraton at Malpensa airport is most ideal for people who has an early morning flight to catch. We chose to stay there for one night for that reason. The staff was friendly and the food in the restaurant was good though somewhat pricy. We had a comfortable stay for the night. But in general SPG Recognition for gold members is not generous. And this hotel was no exception. October 7, 2014
Rated 2 out of 5 by BMWS1000RR Stay away if you can I booked and paid for 2 nights at this hotel. After check-out the hotel adjusted my reservation to a 1 night reservation, even though I paid for a 2 night reservation. There's a ongoing promotion where you are required 2 nights to be eligible. This hotel is adjusting reservations to 1 night so they don't have to "pay" their customers the triple Startpoints they have earned. This is not the first time this hotel has adjusted my 2 night reservation to a 1 night reservation. I stay at SPG properties all over the world and this hotel is the ONLY hotel I continuously have problems with. Although if you call SPG Platinum line, they will adjust the mistake. Again, this hotel actively adjusts the number of nights of your reservation. Their way of saving money. But nothing but a headache for all the loyal SPG members out there. October 7, 2014
Rated 4 out of 5 by Gaby628 travelling good exprerience with Sheraton hotels October 3, 2014
Rated 5 out of 5 by arjaguz This Hotel has a great food and beverage experience Thank you for your effort to make my stay a wonderful one. October 2, 2014
Rated 4 out of 5 by Carol1972 Good Hotel...But We booked this hotel because of the location right at the airport. We found the staff to be extremely efficient. There are just as few things that could have been done to improve the experience. First the hall to our room was not uplifting at all. The walls were painted a dark brown with no pictures....Pictures of Italy would have been nice. There was no stand for suitcases. We placed them on the floor. The room itself was very nice, clean and comfortable. As we were preparing to leave, I was fixing coffee. The pot must have been defective and tripped the breaker for the room. It was completely dark with no emergency lighting We were scheduled to leave that morning to return to the USA and my wife was not ready. I found a staff member who quickly got a ladder and reset the breaker. The restaurant had good quality and reasonable pricing. The decor was similar to a large institutional cafeteria. The service was good and the complementary welcoming Prosecco was a very nice touch. Overall the stay was very good but with some attention to a few details this hotel would be first class. October 1, 2014
Rated 4 out of 5 by Alora28 Facility excellent, service varied. Sheaton Malpensa has a great location for early departures. Soundproof rooms were very comfortable, large, with great bathrooms. Nice exercise facility on site. The desk and restaurant service was excellent, and very responsive, but bar service was so poor that we left after waiting 20 minutes at a dirty table, or which there were many. And the staff weren't overwhelmed with business. Internet access needs to be improved: 45 min free is not "free wifi". September 28, 2014
Rated 1 out of 5 by AlfredoKraus Very poor service If you stay here, be prepared to have to call reception for everything you would expect any other hotel to have done without being told - cleaning the room, making the beds, re-stocking the minibar, replacing the breakfast forms, replacing the laundry forms, you name it. They are geared to have people stay one night and leave - if you stay more than one night they forget you used things on the first night September 20, 2014
Rated 4 out of 5 by Kiwoz Overcharge of credit card When checking in my card was debited for more than the room rate. I was assured on checking out this would be refunded immediately. To date this has not happened and I am not impressed September 17, 2014
Rated 1 out of 5 by jazlul Lack of employees came from Milan Central Station , we had to come down to Terminal1 and not in front of the hotel entrance as your website indicates regarding bus transportation .Once in Terminal 1 and with lack of indication I tried 10 times to call the hotel and each time going thru the automatic answering switchboard and end up with no human answering . Room service do not answer unless the receptionist walk personally to kitchen to make them call back the room, than you wait a very long time for the service. Morning time was better, good breakfast and an excellent bellboy who was proactive regarding luggage transfer to terminal1 as he explained thoroughly and precisely what to do and where pertaining to vat reimbursement and check in, I do not recall his name but he was from Philippines. September 15, 2014
Rated 4 out of 5 by touchdownjj Good Hotel, Easy Access to Milan City Center As Platinum member, we received upgrade to junior suite. The room included a sitting area, and large bathroom with separate shower and bath. The bed and pillows are comfortable, and with large window and high ceiling, there were plenty of sunlight. The front desk and bell captain was very responsive and helpful. Rail station is just downstairs, with express train, it is only 30 minutes away from downtown Milan. The only downside, is for some strange reasons, that housekeeping did not clean and wash used cups and glasses. and does not toss away empty soft drink cans that were on our bed stand. The club lounge offers a good selection of breakfast choices. I will definitely stay here again. September 8, 2014
Rated 3 out of 5 by Travlr4u Milano Malpensa stay I was disappointed this time , I had booked 2 rooms , my coworkers room smelled like cigarette smoke and the tv did not function. When I returned to my room late Thursday afternoon around 7 pm my room hadn't even been cleaned, Had dinner there Wednesday evening and the service was terrible and very slow. I had to request updates was told 10-15 minutes and it was over 30, by the time the food arrives my coworker and I are beyond caring. We asked for the check immediately , I was asked why and I told the server the service was terrible, had the restaurant been busy I would have understood. At that time of the evening it wasn't even at 25% capacity. September 6, 2014
Rated 5 out of 5 by Lee18 Not Your Typical Airport Hotel! I've stayed at many airport hotels and have never been impressed. They typically served their purpose in being in close proximity to an airport. The Sheraton Malpensa was a complete surprise. The rooms were great, the staff very pleasant, and the common areas bright and comfortable. I would stay here again without question. September 6, 2014
Rated 4 out of 5 by Daniel14 Excellent for business travellers...but unacceptable check out process due to local legal requirements Excellent hotel for international business travellers; right next to the airport, walking 300m underground, and direct access to Milan Express airport train to city center. But to get a proper invoice adressed to your company the reception desk insists to have the correct VAT number of your company due to local legal requirements. It took them 15min to search without success. Unacceptable check-out process. Needs urgent improvement September 3, 2014
Rated 5 out of 5 by globalicon Great Starwood Hotel in the airport This hotel is super convenient because it is located right in the airport. As soon as you exit the hotel you are right by the the train which takes you straight to Milano Centrale and near terminal 1. After walking so much in Italy, it was nice to have a hotel so easy to get to. The front desk and checkin was good, there was enough staff that you didn't have to wait too long. The rooms were so modern and clean, and it was nice because the ceilings were high which gave the room a much bigger feel. Also, the hallways and lobby are wide and spacious.. The restaurant was good and decently priced considering its Europe. September 1, 2014


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An open house meeting today (TUE) in Sleepy Eye will discuss the possibility of constructing a county-wide recreational trail in Brown County. Organizers are trying to get representatives from all county outdoors groups and affected communities to attend the meeting. The "Come & Go" meeting is being held from 5 to 7pm today at the Sleepy Eye Community Center. A map of possible routes through Brown County will be on display, and a short presentation will be held at 5:15 and 6:15 to discuss the background and current status of the Brown County recreational trail proposal.
Brown County Recreational Trail


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Great articles on other sites
Great articles on other sites
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- CSIRO, NICTA merger could cost 200 jobs - Training & Development - News - iTnews.com.au
- Sydney Opal card travel history can be accessed by police
- NBN analysis 'like foxes reviewing the hen house': Clare
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- Australian government undoing profit shifting clamp down: Labor
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- Will IBM pip Azure at the Aussie cloud post?
- Competition watchdog should break up Foxtel monopoly: Ludlam
Gadgets, Industry, News - Written by Renai LeMay on Monday, March 25, 2013 17:30 - 15 Comments
"Open, frank + candid": Apple defends tiny tax bill
news Iconic technology giant Apple has described its relationship with the Australian Taxation Office as "open, frank and candid" and its process of calculating its local tax obligation as "rigorous", despite the fact that the company last year paid local company tax of just $40 million, off Australian revenues of $6 billion.
In January, Apple revealed it had a record year in terms of revenues and profits from its Australian operation over the past year, raking in revenues up 23 percent to almost $6 billion for the year to the end of September last year, as new iPad and iPhone launches sent the company's finances into the stratosphere over the past 12 months.
The figures were revealed in Apple's Australian financial results published with the Australian Securities and Investments Commission, shortly after the company released its global quarterly results in the US. They showed that over the year to the end of September 2012, Apple pulled in local revenues of $5.99 billion over that year, up 22.9 percent from the previous year's figure of $4.87 billion.
The company made gross profits of $493.1 million after the cost of goods sold were taken out of its equation, with net profits coming in at $98 million. The company's largest expenses, apart from the cost of goods sold, which is an internally calculated figure charged by Apple Australia's US parent, were sales, marketing and distribution expenses of $296.2 million (up from $215.3 million the previous year) and administration expenses of $45 million. The company disclosed that it paid local income taxes of just $40 million, off net profit of $98.6 million.
As with Google Australia's revenues disclosed last year (the company paid local tax of just $74,000 off estimated revenues of close to $1 billion), Apple's financial disclosure cause uproar in the political community, with figures such as Labor backbencher Ed Husic describing Apple's tax duty as "simply staggering".
There is one significant anomaly in Apple Australia's financial results from a profit perspective compared with its global results. In Australia, the company only made a relatively small net profit — $98.6 million, off top-line revenues of almost $6 billion. However, globally, the company in its most recent quarter made a significantly higher net income figure as a proportion of revenue — $13 billion off revenues of $54.5 billion. As a proportion of revenues, Apple's cost of goods sold in Australia is significantly higher than it is globally, meaning the company pays little tax in Australia compared with its global tax situation.
The Federal Government is currently introducing a swathe of new tax measures which it hopes will enable it to more closely examine tax situations such as those used by Apple and Google.
However, speaking before the Federal Parliament's IT price hike inquiry last week, Apple Australia managing director Anthony King strongly defended his company's taxation situation, stating that it had a good relationship with the Australian Taxation Office.
"I am happy to talk in generalities around the components of our tax return and the process that we go through with the Australian tax office every year," said King. "That process is very open, rigorous and transparent. We report to the ATO all the revenue that we derive in the Australian market. We report to the ATO all the costs of doing business in the Australian market, from product costs to all of our operating expenses. That brings us down to a net profit number. That net profit number is a number that we are very open about with the Australian tax office.
"They know our revenue, they know our costs and they know all of the details about the way in which we have financial affairs running in any particular year. Against that net profit, we apply the 30 per cent corporate tax rate for Australia and we pay our tax expense. We pay our taxes when they are due—not only income tax expense but GST, payroll, [fringe benefits tax] and any other tax that might be incurred in doing business in Australia."
"We are very clear in the way that our revenues, cost of sale and any of our local operating costs are registered to the Apple Australian entity. We have very robust and deep accounting systems in place to ensure that all of the revenues associated with doing business in Australia are fairly reported and all of the cost of sale in terms of the hardware, transformation costs and shipping costs are fairly reported—as indeed, are all of the local operating expenses in doing business in Australia. And those numbers are considerable: we employ 2,600 people around the country. We have 18 retail stores. We have operating leases. We have considerable costs incurred in the sales and distribution of our products within the Australian market."
However, the executive was pushed heavily in the hearing by MPs such as Husic, with the politicians questioning King about the details of Apple's so-called "transfer pricing" mechanism by which it prices the cost of goods when transferring them between its legal entities (such as its Australian division and its US parent). It is this mechanism which accounts for the cost of goods sold and which critics say allows multinationals such as Apple to keep their Australian net profits, and therefore taxation, down.
"… it was reported earlier this year as a result of information obtained through ASIC that on the basis of generating here in Australia $6 billion in revenue Apple paid only $40 million in tax. Apparently that is two-thirds of one per cent of your turnover. You do not manufacture here. You do not conduct R&D here," Husic told King.
"I am going to put something to you, which I would welcome your response to. It is not all these other add-on figures that are set. On the issue I was referring to earlier, about where exactly is the point at which you set the prices: is it set by the US before it agrees to a transfer price on product? You set your prices based on what you believe is in the best commercial interests of the company, obviously; but taking into account taxation as well. I put it that the reason why Australian consumers pay more has more to do with your transfer price than anything else."
However, King disagreed with Husic's claim that Apple's transfer pricing policies were behind the issue of Australians paying more for the same Apple products than US consumers did.
King said: "We clearly record and report the revenue that we derive in Australia. We report to the ATO all of the costs associated with doing business in Australia. The ATO is the referee, so to speak, in the middle of this. We have a very open, frank and candid dialogue every year with the ATO about our tax affairs, which includes, like any company, our revenue and our costs down to our net income. They are really the three items that are relevant for our discussions with the ATO. We track all of the revenue that we derive here. We track and report all of the costs associated with doing business, which brings us to the net profit number. We have a very good relationship with the ATO, and I am sure our tax guys absolutely love it whenever they have to spend time with the folks down the road!"
In general, King said that the internal cost of Apple products was set at a level which was broadly consistent in markets around the world in US dollars, and then translated into local currency, although the cost of some components — such as Australian power connectors — could vary. The Apple executive said, to the best of his knowledge, that Apple's Australian division paid broadly the same price for services from the company's US division that other Apple divisions did.
Again, I'm sorry, but I really must call into doubt here the credibility of Anthony King's testimony before the committee on the company's Australian tax situation, as I did with King's previous claims with respect to Australian prices on goods sold through its iTunes store.
If you examine Apple's tax situation globally, the ridiculous nature of its Australian tax situation becomes clear. Consider the fact that in Australia, last year the company only made a relatively small net profit — $98.6 million, off top-line revenues of almost $6 billion. However, globally, the company in its most recent quarter made a significantly higher net income figure as a proportion of revenue — $13 billion off revenues of $54.5 billion. As I mentioned earlier in this article, a proportion of revenues, Apple's cost of goods sold in Australia is significantly higher than it is globally, meaning the company pays a tiny amount of tax in Australia compared with its global tax situation.
Furthermore, as MPs pointed out to Apple in the hearings last week, the company does not host research & development or manufacturing facilities in Australia. In this context, the claim that it is legitimate that Apple should make only a miniscule profit in Australia and a massive one in the US is clearly ludicrous. Apple is widely acknowledged as one of the most profitable companies in the world. It is simply not credible for King to assert that his company is being as transparent as it can with the Australian Taxation Office with respect to its local tax obligations; clearly the company is utilising, as many companies of its size do, favourable transfer pricing on the cost of its goods sold, to ensure it will minimise its Australian tax obligation.
Is such a practice legal? Probably, although the Government is changing the law in this area. Is it ethical? Not in the slightest. Apple is taking billions of dollars out of Australia every year at the moment — and paying very little tax.
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Sorry if this is a simple question – but is apple making a profit twice?
Ie: the global operations profit on the sale to Apple Australia, and then Apple Australia profits on sales to Australian customers?
And if so does every country work the same way? Including the US sales?
Not quite. They took $6b in Australia, but transferred $5.5b overseas. That $5.5b doesnt get taxed through our system, but wherever it ends up. Which is usually the Cayman Islands, or somewhere like that.
How apple works is simple. Say you buy an iPad for $600. $550 of that represents what they paid Apple International for the product, $50 represents what Apple and the store you bought it from take as gross profit. Then out of that $50, $40 are the costs of running the Australian branch of the company.
Much of this debate gets caught up in the $600, when they should be looking at the 2 parts separately. The $550 and the $50.
To look at it another way, if you bought an imported car, the bulk of that cost goes back to wherever the car was made, whether its the maker in Europe, Asia, or America. So why would that portion of the cost ever be counted?
And at its most basic, thats where the problem lies. What part or the shelf price is being siphoned out of Australia, and whether its too much. End of the day, it isnt by as much as people think.
Thanks GongGav.
Part of my question stems from the concept that selling to Australia adds "another layer".
If you look at it as "Apple Global" (or whatever) wholesales to Apple Australia, who wholesale to JB Hifi, who sell to consumers, it makes sense. Each layer adds a markup for the work they do to make it all happen.
And it works for the USA too – "Global" wholesales to Apple USA who wholesale to Best Buy or whatever.
But if it's "Apple USA" wholesales to "Apple Australia", who wholesales to JB Hifi – then obviously in the US they have one less layer, and the prices become reduced. But given that the computers ship from China anyway, and don't come via the US, the difference in extra layers would no longer make sense. There's an artificial extra layer in Australia (or there's a hidden extra layer in the US that doesn't get factored in).
So are there as many handling layers from China to Bestbuy as there are to JB Hifi? And do the corporate layers match?
It still works the same way for Apple USA as well.
They do whats called transfer pricing, where you move assets from one part of the business to another part. The cost of goods is moved with it, so the appropriate company gets credit for the costs, and profits. Where the problem comes from is where a multinational company moves those assets across borders.
For most multinationals, they can take advantage of a few tax loopholes around the globe to pay very very little tax on their profit, and the key to that is transfer pricing. So Apple International charges everyone, including Apple USA, an amount per product thats borderline price gouging. Because its only internal numbers the net effect on the business is zero, but it effects the profits for that branch of the company, and hence the amount of taxable profit.
Where the US gets benefits we dont is the sheer size of their economy. Its significantly cheaper to import the products into America, because there is just so much product being moved there. Here, not so much, so the middle man needs a higher profit margin per product for his own business, which transfers to the sticker price.
Its actually a shelf company in Ireland that all the money funnels through. Apple USA is no different in that regard, so no, there isnt one less layer. They effectively get a similar benefit from the size of their economy though.
To put it a different way, JB HiFi might order 100,000 iPads for sale around Australia, whereas Best Buy might order 1,000,000. 10 pallet load versus 100 pallets. And its more cost effective to move 100 pallets instead of 10.
This happens across industry and has even got some sectors in trouble when trying to expand.
There was a mine a few years back that payed very little royalties to the traditional owners because their international parent was charging the local operation well above market to freight the ore out of the country. I will let you guess what happened when they wanted to expand the mine.
Employees pay tax on their revenue line, it's time companies did the same.
Yes I think that's going to be critical to the world economy in the near future.
Its not easy to solve.
Heres the problem. See the transfer pricing comment above for some background. Of the $600 for an iPad, $550 is transfered to Apple International, a company in Ireland, where the company tax rate is very low as an incentive for businesses to operate there.
They then use transfer pricing to move the money to the Netherlands, which have a nifty little loophole that makes transfer pricing between European countries legal, and tax free. Then the move the money back to a second Irish company, which is actually based in the Cayman Islands. Because the company is registered in Ireland, there's no tax on the transfer, and because the company is foreign, the money isnt taxed when it gets back to Ireland.
So its taxed under Cayman Island rules. Which I think means they pay about 1% tax. The only part thats taxed in Ireland is a small residual to cover the operating costs of the 12 people that actually work there. The 2nd Irish company is a shelf company with no staff.
So to fix the problem, you need to change Australian law, Irish law, Dutch law, and Cayman Islands law. We cant just change our laws, as we have other loopholes that would still let it happen. Like moving the profits through New Zealand first, which would be allowable under other laws. So you need to change their laws as well, at which point some other country becomes the loophole.
Its complicated to solve, and hence why it hasnt been solved yet. And really, theres not much AUSTRALIA can do about it. Its a global thing. Transfer pricing is a genuine issue for multinationals, so you cant just shut it down, or you create bigger problems elsewhere.
Apple does what every Company operating in Australia does. It pays the least amount out that it possibly can to derive its net distributable profits. In this it is no different to any other individual or Company.
If the Australian Tax laws are defective and don't achieve what the Government wants then the fault lies with the Government not the taxpayer.
There is no ethical consideration.
This action is called good business management..
Globalisation has been fantastic for businesses. Unfortunately, it doesn't take account of either people or governments. Until governments sort out collectively how to deal with global industries, companies like Apple will continue to shift their earnings to countries where they will pay the least tax. It's a fact of business.
Countries have to collectively act to stop this, which probably means the UN. Standardising international business tax law would solve the problem overnight – and mean there is no incentive to shift profits. Of course, countries have enough trouble agreeing to local tax laws so this is not something that is likely to happen any time soon. And some countries which have deliberately structured their tax law to encourage investment will lose out big. Finally, business law is not just a national issue but a state issue. If individual states within countries continue to offer tax breaks, the problem remains.
tl;dr – it's complicated, and business has the upper hand.
The problem is that the Government doesn't have the guts to fix the problem.
Income tax with all its exemptions deductions and rebates is an inefficient way to raise revenue and is inherently open to abuse. It is really becoming a dinosaur in the modern world.
A direct tax on turnover without any deductions is the simplest way to raise revenue and has the least opportunity for tax reduction, legal or illegal. This why the majority of businesses oppose it.
Until the Government tell the businesses to go jump and impose an equitable system for everyone we will continue to have the problem of tax minimisation demonstrated by Apple.
That simply wont work. You would destroy our economy in the process, and undo decades of work to create what is considered one of the most stable on the planet.
There are reasons a debit tax system hasnt been put in place, the simplest of which are our agreements with foreign companies. By agreement we cant tax money that is heading overseas, because their laws take precedence. Its actually an extension of whats in the Australian constitution.
It might look good on paper, and seem to solve plenty of problems, but the problems such a process would introduce are far worse. In short, you would end up with Australia being boycotted by the rest of the world.
And no, thats not an exageration.
The alternative would be to remove our money from Australia and do all our financial dealings offshore. Get hit once, and once only. Which wouldnt solve the problem.
"By agreement we cant tax money that is heading overseas, because their laws take precedence. Its actually an extension of whats in the Australian constitution."
I would suggest that you go and have a look at our double tax agreements. We do impose tax on money going overseas including interest, dividends and royalties.
If we can't impose a debits tax how come we have a GST which is imposed on transactions within Australia regardless of overseas affiliations? Why hasn't that sent us in to economic oblivion?
Where in the Constitution does it prevent a debits tax system? Last time I looked the Commonwealth had the taxation powers ceded to it from the States so the Commonwealth powers wouldn't be covered by the Constitution as far as I am aware.
Fine, if you think it's got a chance of working, go to your Federal member and tell them to man up and get it going.
It simply wont work, as good as it looks on paper. I'm talking from experience here, I administered the last debits tax we had in Australia, and I work with GST legislation now. Oh, and I worked in Sales Tax as well. Three similar issues.
GST isnt charged on transactions by the way, its charged on goods and services. Big difference. You have something thats taxable, its a flat 10% of the cost. That cost is effectively transferred along the wholesale and retail line to the final consumer, which is very different to what you propose.
The most common debit tax suggested is a small percentage hit to every transaction, usually a small amount like 0.5% of the value. Which undermines every business practice our economy has built up over 100 years of taxation, and alienates us to the global economy.
Why would large multinationals deal with Australia when every money movement loses 0.5%? Or more. Lets take Apple. They move an iPad into Australia, for $550. Semi-random number, its what I've been using in regards their $6b revenues debate, so I'm sticking with it.
So, they move that $550 product into Australia. $2.75 hit. The importer (Apple Aus) onsells the product to JB HiFi for $600. Another $3 hit. JB HiFi banks that $600, another hit. They pay their staff out of that, another hit. Apple Aus banks their take, ANOTHER hit. Apple International moves the $550 out of Australia, yet another hit…
They add up, which is great for the system, that one transaction has just generated around $20 in taxes. Out of what is currently (and frankly, correctly) a $50 gross profit in Australia.
And therein lies the little nasty with a debits tax. Imports end up getting smashed by the tax, because the biggest part of the cost gets hit twice, while the smaller part relevant to Australia gets hit half a dozen times if not more.
Now go tell the economy of Australia that we'll be hitting their profits for around 40%. The average punter wont care, they take their pay out and work with cash. Oh, there's another problem right there. Cash sales stay out of the debits tax system.
It. Just. Wont. Work.
@ GongGav You say.
""I'm talking from experience here, I administered the last debits tax we had in Australia….."
To the best of my knowledge Australia has never had a debits tax of any sort so I would be really interested if you could reveal the details. The closest that I can recall was a stamp duty on financial transactions which was found to breach the interstate trade provisions of the Constitution.
"GST isnt charged on transactions by the way, its charged on goods and services."
Get real there has to be a transaction for GST to be charged. Playing word games doesn't answer the questions that I put which I note that you have not answered.
"Out of what is currently (and frankly, correctly) a $50 gross profit in Australia."
So you tell me that you have extensive experience work with tax yet you don't seem to understand transfer pricing. Sorry GavGong but anyone who has had experience working with tax since the late 70's is well aware of this problem.
This is the problem that we are looking at currently with Apple and others. No country has found a solution to this practice in a traditional "income tax" system so it is obvious that another system is required.
A suitable variation on the debits tax that you describe may just be the answer.
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In NYC, there are two kinds of Irish pubs: those that try too hard, and those that try really hard to look like they're not trying at all. The truly effortless Mr. Dennehy's earned a slot in a Guinness commercial without taking either approach. At this tidy restaurant and pub, owner Donal Dennehy (of Cork, Ireland) hasn't bothered with the usual Irish-bar distractions. There are no dart boards, no billiards, no shamrocked paeans to the joys of a pint. Instead, this relaxed spot strips it down to the basicsa pub-house façade, exposed brick walls, bartenders with the gift of gab and a brogue, and a broad array of whiskeys and beers. In between games, the bar's own soccer-league can be found catching up on world cup status on one of nine plasma-screen TVs. An outdoor café, overlooking Seventh Avenue and serving the pub's full menu, draws a mellow crowd in the warmer months.
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