Hockey Warns Companies on Profit Shifting as New Law ConsideredEdward Johnson
Australia is considering legislation to ensure multinational companies pay tax on revenue earned locally as the country works with the U.K. to tackle profit shifting, Treasurer Joe Hockey said
“We fully expect there to be greater coordinated effort next year in terms of tax law changes around the world,” Hockey told reporters in Canberra today. “You have to pay tax where you earn the profits. Wherever you are located, the developed world has had enough.”
Hockey said he was in discussions with U.K. Chancellor of the Exchequer George Osborne, who last week announced a new 25 percent levy on companies that artificially shift their profits into havens. Tax planning by big companies is coming under increased scrutiny by global regulators, with the Group of 20 economies pledging in Brisbane last month to tackle cross-border tax evasion.
Australian tax officials are “embedded” in multinational companies in the nation to gather information, said Hockey, declining to identify the firms.