Joe Hockey announces new move against multinational tax evaders
Multinational companies who seek to avoid Australian tax but also charge disproportionately higher prices here are in the sights of a new crackdown.
Joe Hockey has told parliament the Commissioner of Taxation has been asked to “double his efforts” to stamp out profit-shifting by conducting “more extensive inquiries and audits of multinational companies considered a risk to Australian tax collections”.
“This government won’t stand idly by while this is happening, and we are firmly committed to ensuring that Australian tax is paid on profits earned in Australia.”
The tax activities of multinational companies has been in the spotlight in recent months, following media reports on the tax paid by global giants such as Apple and Google.
Mr Hockey affirmed the government would continue with its plan to tighten thin capitalisation rules, stopping companies using “hybrid” financial arrangements to dodge existing safeguards.
Opposition treasury spokesman Chris Bowen said Mr Hockey’s proposals lacked detail and accused him of retreating on tax evasion.
Mr Hockey said the former government’s proposals were “flawed” or did not consider the full impact on Australian companies trading overseas, including repealing a measure enabling firms to claim interest deductions on investments in their overseas subsidiaries which produce exempt government income.
Source: theaustralian
