Transfer pricing - and the cruise industry??

[bazzaw]

Interesting article here about "transfer pricing" - and how it reduces tax payable by businesses.

 

Then I thought -- how does this work with the cruise industry???? Looks to me (as a non-expert) as though it would be a prime target -- what with subsidiary companies here in Oz with head Offices overseas.

 

 

 

Barry

[Aus Traveller]

I think the retrospective aspect of the legislation is scarey. I don't mind if the government feels the tax law needs to be changed/tightened, but to make it retrospective is totally unfair. :)

[bazzaw]

I am wondering IF it would affect the cruise industry and if so, how??

 

Barry

[The_Big_M]

It'd affect some lines more than others - basically those which have local operations. It's about the business rather than the ship itself though, so the key element is where their assets are managed. For lines like RCL and Celebrity it's not likely to make much difference even though they now have a local office. OTOH, P&O and Princess AU may be heavily affected as they manage the product here - the impact depends on how their finances are currently managed. Given they process payments offshore, I suspect they are transferring their finances around the world to improve their financial benefit.

[Kiwi Kruzer]

I am wondering IF it would affect the cruise industry and if so, how??Barry

 

 

I am sure it would Barry.

However I would not have a clue as to what they do , or how they do it...

just a gut feeling that all the profits cruise line suck out of Au and NZ, end up overseas somewhere

and probably in a tax haven like Monaco,

who after all puts up all the money to build ,and then owns the ships in first place.

 

On a similar vein we used to chuckle when boarding an oversea cruise ship in Au or NZ, when we watched truckload after truckload of "booze" being loaded aboard at local ports.

We realised of course tht it had all been purchased in local dollars and then would be sold on board in Pounds or US Dollars......

No wonder the ships are keen to call through this way on their World Voyages:D:D

 

[bazzaw]

, P&O and Princess AU may be heavily affected as they manage the product here - the impact depends on how their finances are currently managed. Given they process payments offshore, I suspect they are transferring their finances around the world to improve their financial benefit.

 

 

Them's what I was thinking!!!

 

 

Barry

[The_Big_M]

I am sure it would Barry.

However I would not have a clue as to what they do , or how they do it...

just a gut feeling that all the profits cruise line suck out of Au and NZ, end up overseas somewhere

and probably in a tax haven like Monaco,

Both major lines are listed on the US (and UK) exchanges, so the profits wind up in the hands of shareholders. That said, profits haven't been that high lately. The capital and running costs are also very high!

who after all puts up all the money to build ,and then owns the ships in first place.

They're mostly paid for through finance. During the GFC it made the ongoing viability of RCL in particular a big concern.

 

On a similar vein we used to chuckle when boarding an oversea cruise ship in Au or NZ, when we watched truckload after truckload of "booze" being loaded aboard at local ports.

We realised of course tht it had all been purchased in local dollars and then would be sold on board in Pounds or US Dollars......

As there just isn't enough space to carry the entire season of stock abroad, it is necessary for supplies to be loaded in foreign ports. However, some supplies are arranged through US suppliers.