👉 Background: Hilton Worldwide is one of the world's biggest hotel businesses, with properties in 118 countries. It was started over a hundred years ago by Conrad Hilton, the great-grandfather of socialite and businesswoman Paris Hilton.

👉 What happened: Now, Hilton Worldwide is in a bit of a scuffle with the ATO over unpaid taxes. The ATO believes

• Hilton owes $80.7 million in taxes, penalties, and interest, following the sale of the Sydney Hilton property last year.
• Hilton sold the Sydney Hilton property with the intention to avoid paying tax.

👉 What else: Hilton has already agreed to pay a portion of that amount. But now, they're bringing legal action against the ATO, arguing that their actions were for "commercial purposes only."

What's the key learning?

💡There's a fine line between tax planning and tax avoidance. Business decisions that help cut down your tax bill is all good and well, as long as reducing less tax isn't the main intention behind the decision.  

💡Smart tax planning is a pretty common practice for businesses. But, structuring business deals or making decisions specifically to pay less tax is called tax avoidance.

💡But the difference between the two can be hard to detect and can lead to disputes. Case in point: Hilton Worldwide vs ATO.

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