Australia has followed the U.K. in lining up a so-called “Google Tax” on multinational companies to stop them shifting billions of dollars of profits offshore.
Treasurer Joe Hockey said that the Australian Tax Office(ATO) is currently “embedded in the offices” of 10 big companies in an effort to work out whether they were paying a fair amount of tax in Australia. Hockey wants to squeeze out A$1 billion ($833 million) in revenue over the next three years from the clampdown.
It’s the latest go-it-alone initiative by a G20 country to press ahead with tackling “profit-shifting” by big companies, following a similar initiative by the U.K. last week, and Hockey admitted it may backfire without support from the rest of the international community.
“You actually have to have co-ordinated action because ultimately you can take unilateral action here, but if other jurisdictions allow multinationals to get away with it, then whatever…
View original post 285 more words