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  • Australian Government Announces a Crackdown on Tax Avoidance by 30 Corporations

    The Australian government recently announced that it plans to investigate tax avoidance in its country by a total of 30 multinational corporations, including none other than our favorite tech company, Apple. According to Reuters, the “crackdown” was announced recently at a press conference held in Sydney. Australia’s treasurer, Joe Hockey, told the press that major companies appear to be “diverting profits earning in Australia away” from the country in an effort to avoid paying local taxes. That being said, the government declined to name any specific companies in their statement.

    In addition to the investigation into tax avoidance, the government is also looking to pass several new laws that will aim to close any tax loopholes that corporations are using in the country, going as far as fining the companies up to 100%. If the laws were to pass parliament, they would go into effect starting January 1, 2016.

    For those of you who didn’t know, Australia is joining the European Union when it comes to targeting major corporations for their tax policies, though the efforts seem to mainly be affecting American corporations. Even though this appears to be the case, the EU previously denied specifically targeting American corporations. As far as all of the companies being affected, all are maintaining a stance indicating that they follow all international laws.

    We’ll have to see how the Australian government probe turns out as well but if the companies, including Apple, get hit by all of these penalties at once, it could have a significant impact on the company earnings.

    Source: Reuters via AppleInsider
    This article was originally published in forum thread: Australian Government Announces a Crackdown on Tax Avoidance by 30 Corporations started by Akshay Masand View original post