New laws preventing multinational tax avoidance

The Australian Government is ensuring multinational corporations pay their fair share of Australian tax. We’re introducing new laws, closing loopholes and ensuring profits are taxed here. As a result, more money will be invested here, benefiting Australian communities and the economy.

Diverted Profits Tax
Diverted Profits Tax
Introducing a penalty tax of 40% on undeclared profits, from 1 July 2017
Tax Avoidance Taskforce
ATO & Tax Avoidance Taskforce
They’ve already issued bills of $2.9 billion to large multinational corporations
Multinational Anti-Avoidance Law
Multinational Anti-Avoidance Law
Preventing large multinational corporations from claiming profits were earned overseas
Local laws with global reach
Local laws with global reach
Large multinational corporations are required to report their global activities
Diverted profits tax
Diverted Profits Tax
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Some multinational corporations use legal and accounting loopholes to move undeclared profits overseas, in order to pay less tax.

To prevent this behavior, the Government has introduced a new penalty tax. From 1 July 2017, large multinational corporations that move profits overseas to avoid Australian tax will be penalised with a tax of 40%.

The Diverted Profits Tax is designed to strengthen Australia’s multinational tax avoidance laws and will raise an extra $100 million per year from the 2018-19 financial year.

For more information on the Diverted Profits Tax, visit the ATO

Tax Avoidance Taskforce
ATO & Tax Avoidance Taskforce
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The Government has invested $679 million over four years to run the Tax Avoidance Taskforce, which is led by the ATO’s commissioner of taxation.

The ATO has already issued tax bills of $2.9 billion to large multinational corporations, and the taskforce is expected to raise a total of $3.7 billion in tax liabilities.

For more information on the Tax Avoidance Taskforce, visit the ATO

Multinational Anti-Avoidance Law
Multinational Anti-Avoidance Law
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The Multinational Anti-Avoidance Law has been established to ensure that large multinational corporations pay their fair share of tax on profits earned in Australia.

The law prevents large multinational corporations from claiming profits were earned overseas, when they were earned in Australia. It’s been in effect since 1 January 2016 and impacts large multinational corporations with an annual global income of more than $1 billion.

For more information on Multinational Anti-Avoidance Law, visit the ATO

Local laws with global reach
Local laws with global reach
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New laws require large multinational corporations to report details of their global financial activity with the ATO, including how much money they made and their tax bill in every country they do business.

These requirements will allow the ATO to better understand corporation’s international finances, reducing multinational tax avoidance.

For more information on local laws with global reach, visit the ATO

 
New corporate tax laws
The Government is introducing new laws, closing loopholes and ensuring profits are taxed here.