The Government continues to attempt a tough stance on corporate tax avoidance and, following last year’s introduction of its Multinational Anti Avoidance Law (MAAL), this year the Turnbull Government plans to establish a new Tax Avoidance Taskforce (TAL) to crackdown on multinational tax avoidance and add revenue that is rightfully ours.
The Australian Tax Office (ATO) will receive $679 million over the next four years to help set up the taskforce, which will be accountable to the Government and have an aim to enforce the correct payment of tax by multinational and private companies, as well as other high-wealth earners. The taskforce is expected to raise over $3.7 billion in revenue by 2020.
The Government’s Tax Integrity Package will also see the introduction of new taxes aimed at multinationals that divert profits from Australia. This measure hopes to gain around $200 million by 2020.
The facets of the Tax Integrity Package include enhanced protection for whistle blowers, improving transfer pricing rules and increasing penalties for global companies that fail to adhere to tax disclosure obligations.
Over the next four years, the MAAL and the Diverted Profits Tax are expected to raise around $650 million – money that will be put towards services needed by all Australians.
What does this mean for you?
Companies (that already should be) paying the correct amount of tax means the Government doesn’t have to seek compensation from those who can least afford it. After all, it’s only fair that public and private entities that profit on our shores pay the taxes rightfully owed to our nation.