Why some companies don't pay tax

HOW DO COMPANIES GET AWAY WITH NOT PAYING TAX?

* Taxable income may be $0 depending on impact of "adjustments" such as income not being assessable under tax law, expenses being tax-deductible and tax losses being carried forward.

* Tax payable is reduced by tax offsets such as franking credits for dividends received and credit for foreign taxes paid.

* Special rules apply to calculate tax paid by some companies, such as insurance firms.