US, Australia Strike Deal On Tax Data Sharing To Target Tech Giants' Profit-Shifting

Jack Lew. Photo: Getty

Australia and the US have agreed to the details of an agreement to automatically share tax information to fight companies using global profit shifting to avoid tax.

US Treasury Secretary Jack Lew says a defacto agreement has been completed and the two countries aim to sign it soon.

“I believe that the G20 should continue to provide its full support and encourage all national to adopt this standard,” Lew said at a press briefing in Sydney for the G20 meeting.

Australian Treasurer Joe Hockey has been pushing hard at the G20 to get measures to shut tax loopholes for technology giants such as Apple and Google.

The agreement in principle from the US is a major win for Hockey.

Hockey wants enhanced transparency through the automatic exchange of tax information among the G20.

In 2013, Apple had revenues for more than $6 billion in Australia but paid just $56 million in tax.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.