ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes

nero_bolt
Community Member

About Time

 

http://www.dailytelegraph.com.au/news/national/atos-global-tax-hunt-multinationals-under-scrutiny-fo...

 

 

  • Google believed to be among firms forced to throw open books
  • Sophisticated schemes used to minimise tax on ‘super profits’
  • Some firms have complained to the US treasury

UP to 10 multinational firms, including the world’s leading tech companies, are being audited by the tax office in the largest investigation into offshore “super profit” shifting in the nation’s history.

 

 

At least five digital companies, one believed to be the internet giant Google, have been forced to throw open their books as part of a $1.5 billion tax hunt, The Daily Telegraph can reveal.

 

Commissioner of Taxation Chris Jordan confirmed yesterday that a specialist team of 50 auditors was now “camped out” in the Australian offices of several high-profile global companies, including five leading tech firms.

 

The investigation is regarded as a global test case into tax minimisation by tech and internet firms, with many countries waiting for the outcome in Australia to guide similar ­investigations overseas.

 

The ATO would not reveal the identity of the companies.

 

EDITORIAL: IT’S TIME INTERNET FIRMS PAID THEIR TAX BILLS

 

“I can’t talk about individual companies (but) there are some high-profile players,” he said.

 

However, The Daily Telegraph has been told by industry sources that Google was one of the companies subject to the ATO investigation.

 

Google last night declined to comment.

 

Mr Jordan said some companies had displayed “aggressive” behaviour on tax compliance, using sophisticated fronts to minimise the tax they pay in Australia despite posting what he ­described as “super profits” earned from Australian consumers.

 

“We are now saying to them ‘we will camp in your premises, talk to your clients and check every bit of paper’,” he said.

 

Several of the companies are believed to have complained to the US Treasury, claiming the Australian investigation had “overstepped the mark”. It is believed the complaints have fallen on deaf ears.

 

The ATO has this year ­already collected $204 million from companies that have settled. But several others are ­resisting. Mr Jordan said he ­expected several of the cases to go to court next year.

 

The ATO expects to recoup $1.5 billion over the next three years from its investigation. “Some have coughed up … some will resist all the way, some will end up in the court, some of them are high-­profile,” Mr Jordan said

 

The Daily Telegraph can reveal that 86 “high-risk” companies are being reviewed, with 30 completed and 10 now under audit.

Mr Jordan said ordinary taxpayers were having the burden of tax shifted onto them by these large-scale multinational tax avoidance practices, which were operating under international frameworks dating back to 1920.

 

“The G20 will come up with a new framework, but we’re not waiting,” he said.

 

“We are taking an ­aggressive approach to multinationals. There is a lot of money involved and a lot of community concern. They are already starting to baulk at the tax office camped in their offices, but we want people to understand there is a consequence to adopting the outer limits.

 

“PAYE salary earners have no choice, tax gets taken out every fortnight ... ultimately it means the average person is carrying the burden.”

Treasurer Joe Hockey has flagged the possibility of new tax laws to net the multinational tech companies.

 

“When multinationals divert profits overseas ... they are cheating ordinary taxpayers, who pay their fair share,” he said.

 

“We continue to work closely with our international colleagues in strengthening the integrity of our tax ­systems.”.

 

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ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes

And media companies
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ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes

What real news is happening behind the scenes for this puff piece to be announced
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ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes

Puff piece for sure.....

 

 

....But Mr Hockey warned the government would not move quickly, preferring to join "co-ordinated action" against profit shifting across the globe.

 

 

Mr Hockey said the government was considering greater powers for the ATO but expected a number of court cases to precede a co-ordinated global crackdown.

 

"You actually have to have co-ordinated action because ultimately you can take unilateral action here, but if other jurisdictions allow multinationals to get away with it, then whatever you do domestically is not going to work," he said.

 

http://www.smh.com.au/federal-politics/political-news/joe-hockey-confirms-tax-office-crackdown-on-mu...

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ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes

http://www.abc.net.au/news/2014-09-29/a-third-of-top-australian-companies-pay-less-than-10pc-tax/577...

 

 

Rupert Murdoch's 21st Century Fox pays 1 per cent tax and casino group Echo Entertainment pays 5 per cent tax.

The report says the government is losing out on at least $8.4 billion in tax each year, which is substantial but may be the tip of the iceberg.

 

 

what about these guys??  the abbott govt. is not likely to do anything about it. All talk and no action

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ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes

Yep, plenty of  TALK.

 

 

Joe Hockey is talking tougher on tax, but will he manage to get the multinationals to pay more?

Joe Hockey is talking tougher on tax, but will he manage to get the multinationals to pay more? Photo: Reuters



Read more: http://www.smh.com.au/business/markets-live/markets-live-bhp-at-5yr-lows-20141209-3m4wv.html#ixzz3LN...

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ATO’s global tax hunt: Multinationals under scrutiny for minimisation schemes


@myoclon1cjerk wrote:
And media companies

It's a rather ironic sentiment being expressed by newscorpse  😄

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