The details of the federal government’s measures targeting tax avoidance by multinationals are out, and they threaten to be costly for some companies.
Here’s the key clip:
Approximately 30 large multinational companies are suspected of diverting profits using artificial structures to avoid a taxable presence in Australia.
Where the law applies, multinationals will be subject to the Government’s new doubled penalty regime for tax avoidance and profit shifting schemes.
This means that not only will tax avoiders need to pay the tax that they owe, they will also face penalties of up to 100 per cent of the tax they owe and interest.
The government has been careful not to set expectations on how much revenue this will scoop up – and there are likely to be legal challenges and ingenious responses – but the punishments show severe intent.
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