Cracking Down on Multi-Nationals' Tax
Wednesday, 15 February 2017
TURNBULL GOVERNMENT CRACKDOWN ON MULTINATIONAL TAX AVOIDANCE TO HELP FUND SERVICES FOR GLADSTONE FAMILIES
15 February 2017
The Turnbull Government is ensuring multinational tax dodgers pay their fair share of tax, helping to ensure crucial government services [residents] rely can be delivered and are more sustainable.
Federal Member for Flynn, Ken O’Dowd has welcomed the news that around $2 billion in tax is expected to be clawed back this financial year under the Turnbull Government’s crackdown on multinational tax avoidance.
The $2 billion in tax liabilities from multinationals is expected to come from assessments relating to seven audits of large multinational companies in the energy, resources and e-commerce sectors, by the Australian Taxation Office (ATO).
Mr O’Dowd said, "This is further proof that the Coalition Government’s strong action is effectively dealing with non-compliance behaviour of multinationals in Australia. Australia needs a sustainable tax system with integrity to ensure we can afford the services and infrastructure Gladstone residents rely on now and into the future.
"It is these tough measures that we continue to build on, with the introduction to Parliament last week of legislation implementing the new Diverted Profits Tax, which will close loopholes and prevent multinationals shifting the profits that they earn in Australia offshore to avoid paying tax.
"I know this will be welcome news to everyone across Flynn, as I travel around and talk to people, there is broad agreement that multinationals should pay their fair share of tax." said Mr O’Dowd
The Diverted Profits Tax will commence on 1 July 2017, and is expected to raise $100 million in revenue a year from 2018-19.
"The Coalition Government continues to deliver on our commitment to keep our tax system strong. While we believe in lower rates of taxation, paying them is not optional for multinationals." said Mr O’Dowd.