Australian Senate Passes Multinational Anti-Avoidance Law
The Australian Senate has passed legislation that will require companies that “avoid” taxes to pay back double what they owe, plus interest.
The new Multinational Anti-Avoidance Law (MAAL) will cover all multinationals operating in Australia with global revenues of more than AUD1bn (USD730.7m). Approximately 1,000 companies will be affected.
The Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill also provides for the implementation of the country-by-country reporting requirements developed by the Organisation for Economic Cooperation and Development, and the introduction of new transfer pricing documentation standards.
The Government has consulted with both the Australian Taxation Office (ATO) and the Board of Taxation in the preparation of the package and made a number of amendments to reflect the recommendations of the Green Party in the Senate. Treasurer Scott Morrison and Finance Minister Mathias Cormann added that, as a result of discussions with a number of the affected companies, the ATO “now has additional detailed information of how many of these companies structure their tax affairs to avoid paying their fair share.”
