Multinationals come under ATO spotlight

tax-avoidance/ATO/offshore/offshore-investing/Australian-earnings/

27 April 2016
| By Nicholas |
image
image image
expand image

Multinational businesses operating in Australia are coming under the Australian Taxation Office's (ATO's) microscope, as the taxman clamps down on profit-shifting arrangements.

ATO Deputy Commissioner, International, Mark Konza, said the Multinational Anti-Avoidance Legislation (MAAL) was designed to counter the erosion of the Australian tax base by international corporations that use artificial and contrived arrangements to avoid attributing profits to a permanent establishment in Australia.

"Our view is that interim arrangements must reflect the economic and commercial reality of operating in Australian and we continue to engage with taxpayers and review these interim arrangements to avoid attributing profits to a permanent establishment in Australia," he said.

ATO Deputy Commissioner, Public Groups, Jeremy Hirschhorn, said the alert warning against profit-shifting arrangements reflected the ATO's concerns on the practice.

"They are an effective tool to stop the marketing, sale and implementation of schemes, support voluntary disclosures from those who may be involved in these schemes, and enhance community confidence I the integrity of our tax system," he said.

"While the majority of large corporate pay the right amount of tax in Australia and are open and transparent in their dealings with us, we are concerned some arrangements may not meet the laws as intended."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

3 weeks 6 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 3 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3