Multinationals come under ATO spotlight
Multinational businesses operating in Australia are coming under the Australian Taxation Office's (ATO's) microscope, as the taxman clamps down on profit-shifting arrangements.
ATO Deputy Commissioner, International, Mark Konza, said the Multinational Anti-Avoidance Legislation (MAAL) was designed to counter the erosion of the Australian tax base by international corporations that use artificial and contrived arrangements to avoid attributing profits to a permanent establishment in Australia.
"Our view is that interim arrangements must reflect the economic and commercial reality of operating in Australian and we continue to engage with taxpayers and review these interim arrangements to avoid attributing profits to a permanent establishment in Australia," he said.
ATO Deputy Commissioner, Public Groups, Jeremy Hirschhorn, said the alert warning against profit-shifting arrangements reflected the ATO's concerns on the practice.
"They are an effective tool to stop the marketing, sale and implementation of schemes, support voluntary disclosures from those who may be involved in these schemes, and enhance community confidence I the integrity of our tax system," he said.
"While the majority of large corporate pay the right amount of tax in Australia and are open and transparent in their dealings with us, we are concerned some arrangements may not meet the laws as intended."
AUTHOR
Nicholas O'Donoghue
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