Intel Australia’s public relations skills had a workout last week, following an article in Computer Reseller News Australia, which described the local subsidiary’s tax minimization process. The article revealed that orders from large distributors and Australian-based OEM manufacturers are placed through a toll-free telephone line that connects callers to an Intel office in Hong Kong. Orders are placed in US dollars. Intel in the US classifies these monies as accredited revenue. A percentage of this revenue is returned to Intel Australia as commission. This in turn becomes Intel Australia’s operating revenue. It is on the profits accruing from this operating revenue that Intel Australia pays its tax. In this way, Intel Australia staff are effectively treated as sales people on commission. While local Intel managing director David Bolt has confirmed this basic money trail as accurate, he has taken issue with the CRN report, which he has described as inaccurate and inflammatory.
