Australian tax officials have been embedded in the offices of 10
multinationals as the federal government tries to capture as much as $3
billion in dodged revenue each year.
Treasurer Joe Hockey says 60 new ATO staff have been employed as the government cracks down on profit shifting.
He's also in talks with the British government on its announcement that it's introducing a 25 per cent so-called "Google tax" for multinationals that avoid local tax and he has written to the European Commission supporting initiatives out of Germany and other countries that are tightening loopholes.
"It robs Australians when multinationals don't pay tax here," Mr Hockey told reporters in Canberra.
"We are going to do everything we can but it must be co-ordinated."
Mr Hockey has been working with G20 finance ministers and the OECD on tax avoidance during Australia's 2014 presidency.
He expects the tax law to be tested in the coming year using the ATO's existing powers, but the government is working on giving it extra powers.
"I've been in discussion with the Treasury and the Australian Taxation Office about that," Mr Hockey said However, he won't be counting the revenue he hopes to claw back when putting together the budget.
"You shouldn't count your lottery winners or you shouldn't count your income until you have actually received it," he said.
The UK’s Diverted Profits Tax, referred to as the ‘Google tax’ due to its likely ramifications for tech giants, will come into effect in April and could raise more than £1 billion ($1.83bn) over the next five years.
Mr Hockey says there are "new and stronger" links between the ATO and other tax offices around the world and clever accounting to hide profits is "coming to an end".
"I'm absolutely determined to ensure that everything is done to make sure people and companies who earn money in Australia pay tax in Australia," he said.
It's estimated tax avoidance could cost the government between $1 and $3 billion each year.
However, while Mr Hockey says new resources have been allocated to the ATO to focus on multinationals, the office has also shed more than 2000 staff in the past year.
This news story is reprinted from www.theaustralian.com.au
Read more details on Outsourced Financial accounting
Treasurer Joe Hockey says 60 new ATO staff have been employed as the government cracks down on profit shifting.
He's also in talks with the British government on its announcement that it's introducing a 25 per cent so-called "Google tax" for multinationals that avoid local tax and he has written to the European Commission supporting initiatives out of Germany and other countries that are tightening loopholes.
"It robs Australians when multinationals don't pay tax here," Mr Hockey told reporters in Canberra.
"We are going to do everything we can but it must be co-ordinated."
Mr Hockey has been working with G20 finance ministers and the OECD on tax avoidance during Australia's 2014 presidency.
He expects the tax law to be tested in the coming year using the ATO's existing powers, but the government is working on giving it extra powers.
"I've been in discussion with the Treasury and the Australian Taxation Office about that," Mr Hockey said However, he won't be counting the revenue he hopes to claw back when putting together the budget.
"You shouldn't count your lottery winners or you shouldn't count your income until you have actually received it," he said.
The UK’s Diverted Profits Tax, referred to as the ‘Google tax’ due to its likely ramifications for tech giants, will come into effect in April and could raise more than £1 billion ($1.83bn) over the next five years.
Mr Hockey says there are "new and stronger" links between the ATO and other tax offices around the world and clever accounting to hide profits is "coming to an end".
"I'm absolutely determined to ensure that everything is done to make sure people and companies who earn money in Australia pay tax in Australia," he said.
It's estimated tax avoidance could cost the government between $1 and $3 billion each year.
However, while Mr Hockey says new resources have been allocated to the ATO to focus on multinationals, the office has also shed more than 2000 staff in the past year.
This news story is reprinted from www.theaustralian.com.au
Read more details on Outsourced Financial accounting
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