Australian Prime Minister has said that millionaire taxpayer companies like Google and Apple would be required to publish their tax arrangements. This move is a result of Australia’s efforts to curb down the tax avoidance schemes being implemented by big names in corporate world. According to Assistant Treasurer David Bradbury, many big companies have been hiding their actual income and transferring it to other nations where taxes are comparatively lower. “We want to make sure that large multinationals companies are paying their fair share”, he said. According to sources, around 2000 companies would fall in this category including BHP Billiton and Rio Tianto with a turnover of more than $100Million.
The research behind proposed amendments in tax policy has been done by Australia’s Minority Labor Government. Last year, the Australian government had released draft revisions to the existing tax laws to control profit shifting from Australian territory. Similar moves have been taken in past by Britain and Germany as well as this issue was also raised during the group conference of 20 wealthy nations. The revision to tax laws would be decided by a voting which is scheduled after 14th May budget. The Australian government seeks support from independent lawmakers and Greens holding power in parliament. Reduction in the tax rebates would be seen for IT companies which were avoiding tax by simply opting for online sales. Currently, Australian government charges corporate tax of 30% which is higher than many other countries.
With this future plan, the government plans to have an effective system where corporates prefer transparent tax arrangements and fulfil their taxation obligations
The research behind proposed amendments in tax policy has been done by Australia’s Minority Labor Government. Last year, the Australian government had released draft revisions to the existing tax laws to control profit shifting from Australian territory. Similar moves have been taken in past by Britain and Germany as well as this issue was also raised during the group conference of 20 wealthy nations. The revision to tax laws would be decided by a voting which is scheduled after 14th May budget. The Australian government seeks support from independent lawmakers and Greens holding power in parliament. Reduction in the tax rebates would be seen for IT companies which were avoiding tax by simply opting for online sales. Currently, Australian government charges corporate tax of 30% which is higher than many other countries.
With this future plan, the government plans to have an effective system where corporates prefer transparent tax arrangements and fulfil their taxation obligations
Read more about australian taxation
This comment has been removed by a blog administrator.
ReplyDelete