On 2 October 2018, the Government released a discussion paper on the challenges to the Australian corporate tax system arising from digitalisation, inviting public submissions on the consultation.
While digitalisation has delivered significant benefits for Australian consumers and businesses, the Government said it remains concerned that some very profitable, highly digitalised companies pay very little tax in the countries in which they do business.
The paper also questions whether Australia should pursue interim options ahead of an OECD-led, consensus-based solution to address the impacts of digitalisation on the international tax system. To this end, the discussion paper looks at the experience of other countries that have introduced (or are contemplating) interim measures.
Submissions are due by 30 November 2018.