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

We Provide Solutions - Let's Talk Business!

CFO's Journey From 'Staying Out Of Trouble' To Being 'Fully In Control'

TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):

Roadmap for CFO's

Join our Webinars

Are you in control - TP Compliance Deadlines to look out for in 2018
Thursday, January 25, 2018 | 04:00 PM - 05:00 PM (CET)

US Tax Reform – Context, New Tax Concepts, and Impact on Your Business Models
Tuesday, January 30, 2018 | 04:00 PM - 05:00 PM (CET)

Join our newsletters to stay informed about our webinars and news

Copyright © 2018
Transfer Pricing Associates BV.
All rights reserved.

H.J.E. Wenckebachweg 210
1096 AS Amsterdam
T: +31 20 462 3530