Australia has signed an agreement for the automatic exchange of country-by-country reports as part of the continuing efforts to tackle multinational tax avoidance.

Australia was one of 31 countries to sign a new multilateral agreement to share tax information on multinational companies in Paris on 27 January 2016.  The agreement will facilitate the exchange of multinationals’ country-by-country reports (which will contain details of multinationals’ international transactions, including the location of their income and taxes paid, as well as their transfer pricing policies) between tax authorities in different jurisdictions. The first exchanges of information will start in 2017-2018 on 2016 information.

The agreement was signed as part of a continuing effort by Treasury to combat multinational tax avoidance (including the passing of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 (Cth) which commenced on 11 December 2015, and will give the Australian Taxation Office further scope to ensure companies pay their fair share of tax in Australia.

See the Treasurer’s media release dated 28 January 2016.