ATO To Recover $2.9 Billion From Seven Multinationals

On April 6, Australian Treasurer Scott Morrison said that Australia can claim $2.9 billion from seven audits of multinational companies, which are expected to be finalized before July. However, Morrison did not disclose the names of the companies.

Background: Seven Major Multinational Audits

Earlier in March 2017, the Commissioner of Taxation, Chris Jordan, informed that Australian Tax Office (ATO) observed positive changes in behavior from taxpayers and advisors, while notifying that at least seven major multinational audits are expected before July.  He said that at least seven major multinational audits are expected to come to a head before June 30, 2017, four in e-commerce and three in the energy and resource industries.

During his speech, Morrison did not disclose the names of the companies. Treasurer Scott Morrison said that ATO makes sure that multinationals pay their fair share of tax. He said it is important that "Australian citizens get the tax from the profits earned in Australia from Australian customers that is needed to fund vital infrastructure and services here in this country."

Mining Company TP Arrangements

The ATO had issued amended tax assessments for the calendar years 2010 to 2013 for Global miner Rio Tinto. The ATO requires the company to pay A$447 million including interest. "However, Rio said the amended assessments did not relate to any tax avoidance schemes as confirmed by the ATO, and instead involved transfer pricing arrangements between Rio entities in Australia and Singapore," Reuters reported.

Source: Reuters, TPA

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