eWombat Search

Latest Accounting News
Hot Issues
Capital Gains and Renounceable Rights
Treasury finds Australia 'increasingly uncompetitive' as US moves on tax plans
Australia's vital statistics
Our Advent calendar for 2017
SMSFs warned on ‘ticking time bomb’ with outdated deeds
Taxation ruling on commercial website deductibility
68% of SMEs ‘significantly stressed,’ 85% rely on accountants
Statutory wills are underutilised in estate planning
Small business slips on lodgement deadlines
300,000 SMEs utilising $20K write-off, says ATO
‘A bad thing times 10’: ATO set for new SMSF blitz
Capital Gains and Renounceable Rights
Paperwork bungles lead to $38k in payments
Australian Dietary Guidelines and healthy eating chart (PDF)
Former director liable for company’s unpaid tax liabilities
Resources on our site to help you, your family and your friends.
Super for housing measures enter Senate
No Special Circumstances to allow Excess Super Contributions
Housing tax measures progress to Parliament
AirBnb – wrong tax outcome?
Articles archive
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2017
Articles
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
FBT Reminder – Odometer Reading
ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
New law sheds light on global tax issues

Yesterday, the government passed the Diverted Profits Tax through the Senate, however one of the major accounting bodies has highlighted that multinational tax avoidance is an issue that needs to be dealt with globally.



       


 


The Diverted Profits Tax, which passed through the Senate on Monday, will commence on 1 July 2017 and is expected to raise $100 million in revenue a year from 2018-19.


The Diverted Profits Tax, which was announced in the 2016-17 Budget, targets multinationals that enter into arrangements to divert their Australian profits to offshore-related parties in order to avoid paying Australian tax.


General manager of technical policy at the IPA, Tony Greco, told Accountants Daily that this latest tax is part of a wider crackdown on multinationals.


“This profits diversion tax is one of two or three things done recently. The first was Multinational Anti-Avoidance Law (MAAL), and then there's the Diverted Profits Tax and country-by-country reporting,” Mr Greco said.


“These measures are quite broad, extensive and complex, so one would have to argue that it is a move in the right direction as far as the Australian government is concerned.”


While this is positive, Mr Greco said that this is a global issue that should be dealt with from an Organisation for Economic Co-operation and Development (OECD) level.


“It's what we're going to end up with if every country implements their own rules, then there's potentially going to be problems where a multinational is taxed twice as much in multiple countries under different rules,” he said.


“Ideally we need to fix this on a global basis, but we can't wait for the OECD to finalise its action plans when money's tight and Australia's been running deceits. Everyone's been calling on the government to act, so it has to be done sooner rather than later.”


While waiting for the OECD to make progress, Mr Greco said that Australia is taking these steps to soften the blow.


“While the OECD tries to finalise measures, countries like Australia have decided to preempt some of those base erosion and profit shifting announcements and effectively address the leakage. We all know it’s here,” he said.


“Effectively, they're tightening the net on multinationals because they're structured in such a way where they can avoid tax on their activities. These measures are trying to address that leakage ahead of the BEPS Action Plan coming to fruition.”


 


LARA BULLOCK
Wednesday, 29 March 2017
www.accountantsdaily.com.au




5th-April-2017
 

Stapleton Group: 83a Boronia Road Boronia VIC 3155 | Phone: (03) 9760 7800 | Fax: (03) 9760 7860