Multinationals will ‘give’ more to budget

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(Australian Associated Press)

The federal government is toughening anti-tax avoidance measures to make sure multinational companies pay their fair share.

More than $4 billion in tax liabilities is expected to be scooped up by the Australian Taxation Office in 2016/17.

But Treasurer Scott Morrison says it’s not easy.

Many of these large multinationals use complex business accounting structures that feed debt into their Australian offshoots while shifting the profits offshore.

The government will now expand the law to cover corporate structures using foreign partnerships, trusts and other aggressive tax avoidance strategies.

“Everyone, including multinational companies, has a responsibility to pay their fair share of tax in Australia on the profits they earn,” Mr Morrison and Financial Services Minister Kelly O’Dwyer said in a budget statement on Tuesday.

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Categories: Tax