Pro-business lobby groups in the United States have reportedly targeted an Australian-backed plan to crack down on international profit shifting by multi-national corporations.
The plan was unveiled by Australian Treasurer Joe Hockey at the G20 meeting in Sydney last month. It focuses on companies such as apple, which has shifted as much as $9 billion from Australia to Ireland over the past decade, according to the Australian Financial Review.
The National Foreign Trade Council and US Council for International Business have expressed their concern to G20 member countries and the OECD, according to the Fin.
While the United States Treasury has said it will back the changes, pressure on Republican members — who receive political donations from pro-business groups — could prevent an agreement being ratified into domestic law.
The AFR report says the groups are concerned existing investments could be adversely affected by any new international or domestic tax laws, which companies where not expecting. Their behind-the-scenes campaigning could potentially see the proposals watered down before the US agrees.
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