The Government on Fri 3.5.2013, released an Issues Paper – Implications of the Modern Global Economy for the Taxation of Multinational Enterprises seeking comments on the risks to the sustainability of Australia’s revenue base from multinational profit shifting and aggressive tax minimisation. The paper is available on the Treasury Website.
The Assistant Treasurer said the paper had been developed in consultation with experts from the community sector, academics, business and the tax profession on the Specialist Reference Group. Mr Bradbury said multinationals should not be able to use aggressive tax practices to get an unfair advantage over firms that pay their fair share. Domestic laws must also keep up with the changing nature of global commence, he said. (Source:Assistant Treasurer’s media release No 062, 4 May2013.)
In particular, the paper is seeking views on:
- the extent to which another country not exercising its right to tax should be a matter of concern to Australia;
- whether there is evidence of Base Erosion and Profit Shifting (BEPS) in Australia. Where it is considered that insufficient data exists to reach a definitive conclusion on the extent and nature of the problem in Australia, comments are sought on how to identify and/or develop such data, including the benefits and costs of requiring companies to provide more detailed information to the Tax Office;
- whether the key pressure areas identified by the OECD represent the main priorities for action in the short term. If so, what should be the shape of measures to address these pressure areas. If not, what areas should be the focus of action?
COMMENTS are due by 31 May 2013 ahead of a Treasury Scoping Paper scheduled for release in June 2013.
[LTN 83, 3/5/13]