Australia crackdown on tax avoidance
13 May 2015 by News Desk
The Australian government has announced a major crackdown on corporate tax avoidance.
The government has identified 30 well-known multinational companies that it believes operate a range of schemes aimed at avoiding paying tax in Australia. “These companies are diverting profits earned in Australia away from Australia to no-tax or low-tax jurisdictions,” Treasurer Joe Hockey said, adding, “It’s pretty evident which companies are involved”.
Companies found guilty of tax avoidance could be fined up to 100 percent of the amount of tax deemed to be avoided.
Hockey also unveiled a plan to boost Australia’s existing goods and services tax to cover digital products like movie downloads, games and e-books purchased from overseas suppliers. The so-called “Netflix Tax” would level the playing field between Australian and overseas companies and raise around A$350 million over four years.
