Australian Treasurer Says Tech Giants Are Forced to Pay Tax

Australian Treasurer Says Tech Giants Are Forced to Pay Tax
Specialties
Country expertise
Industries
Australian Treasurer Says Tech Giants Are Forced to Pay Tax
March 21st, 2017
On March 21, Treasurer of Australia Scott Morrison told Parliament that the Australian Taxation Office managed to get Facebook, Google and other multinational companies to pay tax in Australia based on their Australian profits as ATO could use "the power, the resources and the penalties to get the job done."
Facebook And Google Changed Their Tax Arrangements

On March 21, Treasurer of Australia Scott Morrison told Parliament that the Australian Taxation Office managed to get Facebook, Google and other multinational companies to pay tax in Australia based on their Australian profits as ATO could use "the power, the resources and the penalties to get the job done." 

Facebook And Google Changed Their Tax Arrangements

The treasurer told Parliament that Facebook is now booking its Australian revenue in Australia rather than in Ireland. "On top of that, Google have also changed their arrangements," he said. Mr. Morrison, quoting tax commissioner Chris Jordan, said multinationals were restructuring to models where sales were booked in Australia. The government had given the Australian Taxation Office "the power, the resources and the penalties to get the job done," Morrison said.

Treasurer on Labor Party

Australia will take in an extra 2 billion Australian dollars in tax from multinationals in the current fiscal year because of the Multinational Anti-Avoidance Law, Treasurer Scott Morrison told Parliament. He then pointed out that the Labor Party, when they were in government, "did absolutely diddly-squat when it came to the issue of making multinationals pay their fair share of tax," the treasurer said.

Tax Measures Developed By The Opposition

However according to Shadow assistant treasurer Andrew Leigh, the measure proposed by the opposition would bring eight times more revenue. He said that the government should drop its corporate income tax cut and adopt Labor's plans to get tough on multinational tax avoidance.  

Sources: The Australian, AP, The Economic Times
 

Australian Treasurer Says Tech Giants Are Forced to Pay Tax
; posted on
March 21st, 2017
On March 21, Treasurer of Australia Scott Morrison told Parliament that the Australian Taxation Office managed to get Facebook, Google and other multinational companies to pay tax in Australia based on their Australian profits as ATO could use "the power, the resources and the penalties to get the job done."
Facebook And Google Changed Their Tax Arrangements
Tax Technology Event 2017
  • How to get your in-house organization and governance set-up BEPS-ready.
  • How to implement technology solutions and change management.
  • How to choose the most suitable tax technology solutions.

Copyright © 2017
Transfer Pricing Associates BV.
All rights reserved.

H.J.E. Wenckebachweg 210
1096 AS Amsterdam
T: +31 20 462 3530
E: info@tpa-global.com
I: www.tpa-global.com