Australia Budget: Multinationals to be hit with ‘Google Tax’
Multinational companies that move profits offshore to avoid tax will be penalized under new measures in Australia’s budget. Companies that are caught shifting profits will then be taxed at a penalty rate of 40%, instead of the usual 30% rate.
“The Australian Tax Office will get a 1,000-person strong team of tax avoidance specialists who will target large companies and wealthy individuals avoiding tax”
The government is seeking to raise additional revenue to pay for tax cuts. Multinational firms that shift profits offshore will be taxed at a penalty rate of 40% under a diverted profits tax, similar to the so-called “Google tax” introduced in the UK last year. The Australian Tax Office will get a 1,000-person strong team of tax avoidance specialists who will target large companies and wealthy individuals avoiding tax.
About Australian Taxation Office
The Australian Taxation Office (ATO) is the principal revenue collection agency of the Australian government. Our role is to effectively manage and shape the tax and superannuation systems that support and fund services for Australians, including:
- collecting revenue
- administering the goods and services tax (GST) on behalf of the Australian states and territories
- governing a range of programs which result in transfers and benefits back to the community
- administering the major aspects of Australia’s superannuation system
- custodian of the Australian Business Register.
We operate under the Public Governance, Performance and Accountability Act 2013, within the Treasury portfolio, and are accountable under the Public Service Act 1999.
Visit: Australian Taxation Office
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