A New ATO Unit Will Investigate Corporate Tax In Australia

Australia’s tax office has set up a new division to investigate whether big international companies avoid paying their dues in the country.

According to Fairfax Media, the new division began work on Monday and will work closely with international partners to see if big corporates like Google and Apple are deliberately avoiding Australian tax by moving profit centres overseas.

There will also be an emphasis on establishing the purpose of Australian businesses in low-tax jurisdictions.

“The Tax Office has responded to community concerns by forming a special unit headed up by one of the most senior leaders in the Tax Office,” Tax Commissioner Chris Jordan told Fairfax.

The new small, but “high-level” division is run by deputy Commissioner Mark Konza.

Commissioner Jordan would not confirm to Fairfax whether Google or Apple were being pursued.

Google paid just $74,000 in Australian tax in 2011, despite an estimated $2 billion in revenue from Australian ads, according to documents cited in the report.

Read more here.

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