Govt cracks down on multinational tax avoidance
The Australian Taxation Office (ATO) expects to raise more than $4 billion in total liabilities this financial year from large public groups and multinationals, according to Minister for Revenue and Financial Services, Kelly O’Dwyer.
In a joint statement with Treasurer Scott Morrison, they said the Government had a focus on reducing opportunities for multinational tax avoidance and had introduced a strong Diverted Profits Tax and established a Tax Avoidance Taskforce in the ATO.
The Diverted Profits Tax would commence on 1 July and would impose a 40 per cent penalty tax rate on Australian profits artificially shifted offshore by large multinationals.
“The Turnbull Government’s legislation will prevent large corporates using schemes to avoid Australian taxation by transferring profits or assets offshore through related party transactions that lack economic substance,” the statement said.
“In this financial year the ATO has already raised $2.9 billion in tax liabilities from seven large multinational companies, and the ATO expects more than $4 billion in total liabilities this financial year from large public groups and multinationals.
“Everyone, including multinational companies, has a responsibility to pay their fair share of tax in Australia on the profits they earn in Australia. This is important to ensure the Government can continue to provide the essential services and infrastructure that support the livelihoods of all Australians.”
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
