Australia Ahead Of The Curve In BEPS Response
The fallout for Australian firms from the BEPS project “won’t be radical in Australia, as we have already moved pre-emptively to strengthen our laws,” Assistant Treasurer Kelly O’Dwyer has said.
Commenting on the release of the OECD’s final BEPS reports, O’Dwyer said: “The Coalition Government’s measures line up with the OECD recommendations to deliver tax laws that will combat tax avoidance and ensure our system is robust and equitable. We are already ahead of the game internationally, and we are working within the G20 and the OECD to promote transparency, integrity, and that quintessentially Australian virtue – fairness – in the global tax landscape.”
“Legislation is before Parliament to level the playing field and ensure multinationals pay their fair share of tax. This includes the multinational anti-avoidance legislation, which will encourage entities to book their revenue in Australia when they have significant sales activity here, and stronger penalties to combat tax avoidance and profit shifting,” the Assistant Treasurer explained.
She added that the Government is also legislating for the introduction of country-by-country reporting and has asked the Board of Taxation to consult with taxpayers on the OECD’s recommendations on hybrid mismatches.
The Government has also “taken action on harmful tax practices and pursued rules to prevent tax treaty abuse … [and] doubled the penalties for those who choose to break the rules through transfer pricing and profit shifting schemes,” she said.
O’Dwyer did nevertheless confirm that the Government “will look closely at the final BEPS recommendations and consider what further steps need to be taken to strengthen Australia’s laws.”
