3 May 2013

Issues paper on multinational profit shifting

Comments are being sought on an issues paper on multinational profit shifting, said Assistant Treasurer David Bradbury.

Last year, the Government asked Treasury to examine the risks to the sustainability of Australia's revenue base into the future from multinational profit shifting and aggressive tax minimisation.

This paper looks at the broader issues surrounding multinational profit shifting and has been developed in consultation with experts from the community sector, academics, business and the tax profession on the Specialist Reference Group.

Multinationals should not be able to use aggressive tax practices to get an unfair advantage over firms that pay their fair share.

"We don't want to see a future where hard-working Australian families and businesses have to pay disproportionately high taxes because multinational corporations are not pulling their weight," said Mr Bradbury.

"We need to make sure that we are doing everything possible through our domestic laws to keep up with the changing nature of global commerce in the information age.

"We have already moved to tighten a series of loopholes that will protect more than $10 billion of revenue over the next four years.

"Just as importantly, governments all around the world also need to re-examine many of the key rules of international taxation, which were designed for the industrial age and are not keeping up with the changing business models and tax planning arrangements of many multinational companies."

Submissions to the Issues Paper close on 31 May 2013. The paper is available on the Treasury website.