Arab Today, arab today new australian laws to crack down on global firms avoiding tax
Last Updated : GMT 02:02:11
Arab Today, arab today
Arab Today, arab today

New Australian laws to crack down on global firms avoiding tax

Arab Today, arab today

Arab Today, arab today New Australian laws to crack down on global firms avoiding tax

Microsoft corporate vice president Bill Sample (L)
Sydney - AFP

Global firms accused of diverting profits offshore to lower their tax bill will come under fresh scrutiny in Australia after new laws were introduced Wednesday to ensure they pay their "fair share of tax".

The bill was put before parliament amid an international push to stop firms using complex corporate structures to avoid tax, and targets more than 1,000 multinationals generating turnovers of over Aus$1 billion (US$700 million), Treasurer Joe Hockey said.

The complex methods allegedly used by firms include booking revenue in lower-taxing countries to reduce tax on profits in higher-taxing jurisdictions, with governments collectively losing billions of dollars in the process.

"It is patently unfair for a large multinational with sophisticated structures not to pay its fair share of tax," Hockey told reporters in Canberra.

"Under this new law, when we catch companies cheating, they will have to pay back double what they owe, plus interest," the treasurer added in a statement.

Australian Tax Office (ATO) commissioner Chris Jordan said the bill also strengthened his agency's abilities to go after firms that continue to shift profits to lower-taxing nations such as Singapore, adding that there were currently "billions of dollars" not being booked locally.

Hockey said the new laws would take a different approach from Britain, which in March introduced a so-called "Google tax" on companies that divert profits overseas, although treasury officials have been working closely with London on the issue.

The legislation will require public companies with income of more than Aus$100 million a year to disclose their tax affairs from December 1.

Rules will also be tightened so heavily geared firms cannot shift profits overseas through the guise of paying interest, while funding to the ATO will be boosted to increase its focus on tax avoidance.

Hockey said at this stage he could not put a number on how much more corporate tax could be raised through the amendments.

An Australian parliamentary inquiry into corporate tax avoidance last month recommended naming and shaming firms that avoid paying tax, after hearings with senior executives from giants such as Apple, Google, Pfizer and Johnson & Johnson.

The firms said they had operated within local and international tax laws.

International efforts to tighten laws have been led by the Organisation for Economic Cooperation and Development (OECD), a grouping of wealthy nations.

Under the G20, which encompasses the world's top 20 economies, Hockey said "very integrated and... wide-ranging" proposals on how to allocate profits from multinational firms between countries were also being discussed.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today new australian laws to crack down on global firms avoiding tax Arab Today, arab today new australian laws to crack down on global firms avoiding tax

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday