CE + IT Multinationals Seek Talk With ATO As Avoidance Laws Near
CANBERRA – Several multinational companies have approached the Australian Taxation Office to negotiate before the Coalition Government’s tougher anti-avoidance laws take effect in January, tax commissioner Chris Jordan has said in opening remarks to the Senate inquiry into corporate tax avoidance.
While not naming the companies, Jordan said he expects the Tax Office to reap $1.1 billion from them. ChannelNews has been told that at least three of those Companies are large consumer electronics and IT Companies.
While much conjecture has surrounded the tax regimes of the Australian subsidiaries of major IT companies including Apple and Google, the multinational anti-avoidance law (MAAL), which will apply from January, is in fact expected to affect more than 1000 companies with more than $1 billion revenue.
Introduction of the anti-avoidance laws was one of the last acts by former treasurer Joe Hockey.
“These laws will make it easier for the ATO to call to account companies that are diverting profits from Australia to low or no-tax jurisdictions,” Jordan has said in opening remarks to the Senate inquiry.
“About 1000 companies will need to consider if the new legislation applies to their arrangements – and around 80 will need to look at restructuring.
“Already we have had approaches from companies and their advisers on how they can work with us to reorganise their tax arrangements. This is a positive sign that we are going to see a change in the way these entities design their tax strategies.”
Jordan said the ATO is also working with the OECD in its plan to fight profit shifting, known as Base Erosion and Profit Shifting, or BEPS.
“These new global rules, implemented consistently around the world . are the game changer to combat tax avoidance by multinational companies who operate across tax jurisdictions,” he said.
