Australian Government Finally Moving To Close Tax Loopholes, Even The Australia Tax

By Luke Hopewell

The Australian Taxation Office has extensive investigative powers and can take appropriate measures to ensure that multinational companies operating in Australia are not just complying with our laws but also paying their fair share.

Both the current Coalition and previous Labor Governments have long been looking to close tax loopholes that have seen big multi-nationals able to shift profit offshore in order to allegedly avoid paying tax in the Australian market.

The campaign to close tax loopholes and crack down on so-called transfer pricing in the Australian market, especially amongst big tech multi-nationals like Apple and Google, has been discussed in Parliament as far back as February 2013.

The moves to close tax loopholes in Australia through legislation and a tougher tax office come a day after a story was published by Fairfax detailing how the ATO is “losing” the war against potential tax dodging multi-nationals, because of deep cuts to staff operations.

The second tranche of the Coalition Government’s plan for tax action is to tell the Australian Taxation Office (ATO) to get tougher on big multi-nationals accused of dodging their tax burden in this country.

In such cases, Australia’s transfer pricing rules could apply to determine whether the appropriate amount of profit from Australian sales was booked to Australian operations.

I have asked the Commissioner of Taxation to double his efforts in this area by undertaking more extensive enquiries and audits of multinational companies considered a risk to Australian tax collections.

Read more here: Gizmodo

    

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