Tech giants face tax dodge crackdown
TECH giants will face some of the “toughest laws in the world” to ensure they do not short change Australians out of billions of dollars in taxes.
The Federal Government last night pledged to turn up the heat on the likes of Facebook, Google, Amazon, and Apple to stop profits being shifted offshore.
New measures would include changes to stop rich, multinational firms accessing tax benefits designed for Australian businesses, prevent large companies “artificially” moving their profits and to expand the definition of a “significant global entity” to target more large overseas firms avoiding Australian taxes.
The new rules will come in addition to the Multinational Anti-Avoidance Law, Diverted Profits Tax, and Tax Avoidance Taskforce introduced over the past two years.
Federal Treasurer Scott Morrison said the laws were working, but needed to be expanded to close further loopholes.
“Our crackdowns on multinationals have already brought around $7 billion a year in sales revenue by multinationals into our tax net, but we need to do more,” Mr Morrison said.
“The next big challenge is to ensure big multinational digital and tech companies pay their fair share of tax.”
More than 30 large, multinational companies have brought or are bringing sales back to Australia following the introduction of the tax avoidance rules, Mr Morrison said.
But tax critics, including Greens leader Richard Di Natale, have claimed big companies were still “artificially inflating” their debts to reduce profits and avoid paying taxes in Australia.
The new rules were designed to close this loophole by limiting “the number of debt deductions multinational entities can claim in Australia,” Budget papers revealed, and ensure “asset valuations used to justify debt reductions” were genuine. The new rules would also expand the number of big companies that would fall under the taxavoidance laws, so private or investment companies could no longer exploit loopholes.
“Under existing frameworks, digital businesses can have a significant economic presence in Australia without making a significant contribution to tax revenues here,” Budget papers noted.
“The Government is committed to ensuring that digital businesses pay their fair share of tax in Australia, and is actively engaging with the OECD in exploring options for taxing the
Mr Morrison said he would release a discussion paper exploring “options for taxing digital business in Australia” in the coming weeks, in a move that could have further implications for online businesses. digital economy.” TRAUMA specialist counsellors are at the forefront of an $18.2 million boost to help domestic violence victims.
And victims of revenge porn will also receive financial help, with the Budget proposing a civil penalties regimen.
A total of $6.7 million will go towards increased Domestic Violence Response Training (DV Alert) for community and frontline workers in 2018-19, and a further $11.5 million will be spent over two years to 2019-20 to increase the capacity of support line 1800 RESPECT. The $6.7 million for extra DV Alert training will help staff to better identify and support victims. It will give them the tools to remove victims from traumatic situations.
The additional support for 1800 RESPECT will allow trauma specialist counsellors to respond to the growing demand for its services and enable it to employ more staff.
The eSafety regulator will also receive $14.2 million over four years. This will include $11.7 million for a civil penalty regimen to combat revenge porn and online abuse.
A total of $22 million over five years will also address abuse of older Australians.
The new laws will enable the Office of the eSafety Commissioner to immediately issue infringement notices of $2500 for individuals and up to $12,600 for companies.