29 May 2013

Gillard Government to improve tax transparency

Legislation introduced into Parliament today will improve the transparency of tax payable by large corporate entities, said Assistant Treasurer David Bradbury.

The landmark changes, contained in Tax Laws Amendment (2013 Measures no. 2) Bill 2013, will overcome the privacy provisions that have so far prevented the publication of the tax liabilities of large corporate entities, including multinational corporations.

"There is a global debate around the tax that is paid by some of the world's most profitable companies," said Mr Bradbury.

"Australia is one of the world leaders in the push to improve tax transparency. Improving the transparency around the tax payable by large corporate entities will help to inform the debate and discourage aggressive tax minimisation practices."

These amendments ensure:

  • the Commissioner of Taxation will be required to publish the tax payable of corporate taxpayers with accounting incomes of $100 million or more a year, and the resource rent tax liabilities of entities subject to the MRRT or PRRT.
  • the publication of aggregate collections for each Commonwealth tax; and
  • enhanced information sharing between Government agencies.

"These changes are part of the Government's broader agenda to crack down on multinational profit shifting and tax avoidance.

"The Gillard Government is committed to ensuring that large multinational companies pay their fair share of tax so that families, pensioners and small businesses do not have to take on a higher burden of taxation in the future."