Update on the Senate Inquiry into Corporate Tax Avoidance
The Senate Economics References Committee Inquiry on Corporate Tax Avoidance held a public hearing on 22 August 2017, which included attendees from various large technology companies, the Australian Accounting Standards Board and the Australian Taxation Office (ATO).
In a joint media release, the Federal Treasurer, the Hon Scott Morrison MP, and Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, noted evidence given by the Commissioner of Taxation, Chris Jordan AO, before the committee, including:
- ATO’s audits and reviews of well-known multinationals and large Australian groups raised over AUD4 billion in assessments last year with nearly AUD3 billion of this amount levied on seven large multinationals.
- Of the AUD4 billion in extra tax raised last year, around AUD1 billion was as a result of assessments on e-commerce companies.
Opposition propose to bring more companies into corporate tax transparency rules
Federal Opposition Senator Katy Gallagher has introduced a private member’s bill into the Senate - Taxation Administration Amendment (Corporate Tax Entity Information) Bill 2017 - which proposes to amend the current tax transparency law requiring the Commissioner of Taxation to publish the tax information of certain companies. The Opposition proposes to align the total income threshold applicable to Australian-owned private corporate tax entities with that of all other corporate tax entities. The amendment would lower the current threshold of AUD200 million to AUD100 million.