Australia does an India, in its biggest crackdown on tax defaulters yet
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It also outlined proposals to force companies selling digital products, such as streamed content and e-books, to pay a goods and
Treasurer
"The government will be proceeding with new tax integrity measures in the budget," he said, adding that the multinational anti-avoidance law would target the activities of 30 identified companies.
"These companies are diverting profits earned in Australia away from Australia to no tax or low-tax jurisdictions," said the treasurer.
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Last month, Australian parliamentarians grilled global technology and mining giants including Apple, Google, BHP Billiton and
The inquiry heard
The firms insisted they had paid the taxes they owed under the country's laws.
Hockey did not name any of the companies being targeted, or say how much revenue the government hopes to get back, but said the
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They had noted that billions of dollars in profits have been transferred offshore to minimise tax in Australia. A usual scenario was to operate in Australia with billing occurring out of
"The money is transferred to
"This is all designed to avoid paying tax in Australia on profits earned in Australia."
Under the planned rules, the
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Australia made closing corporate tax loopholes and endorsing a common reporting standard to increase transparency a key focus of the As well as targeting profit-shifting, Hockey plans to impose a Goods and Services Tax (
"It is plainly unfair that a supplier of digital products into Australia is not charging the GST whilst someone locally has to charge the GST," he said.
"When the GST legislation was originally drafted, it did not anticipate the massive growth in the supply of digital goods like movie downloads, games and e-books from overseas."
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