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  • Apple's Annual Tax Payments in Australia May Go Public Soon

    Apple, Google and other large tech companies that are conducting business in Australia might soon see their annual tax payments made public as a result of a government inquiry into corporate tax dodgers. An Australian Senate committee investigating corporate tax avoidance is set to present transparency proposals on Monday that are expected to include a “name and shame” register for tax-dodging company according to The Sydney Morning Herald. The other thing on the table will be mandatory disclosures of tax payments over a certain limit, which is currently thought to be set at AU$100 million.

    Senator Sam Dastyari said the following regarding the matter:

    There is a major flaw in our tax system that is enabling some of the biggest companies in the world to evade billions in tax that should be paid in Australia. It's time we name and shame our worst tax dodgers.
    The upcoming report is the result of an Australian government investigation which was previously revealed in April. This investigation put several tech companies under review for questionable tax practices. A month later, the “crackdown” was widened to 30 companies. To be more specific, it targeted corporations accused of shifting profits to offshore subsidiaries registered in countries with lower tax rates. The report will come with 18 recommendations, which include the transparency measures alongside proposed annual disclosures of Australian revenue, tax payments, tax deductions and government write-offs.

    Based on the publication, one of four measures incorporated by the Australian Securities and Investments Commission would allow that body to communicate any suspicious tax activity to the Australian Tax Office without first consulting the company in question. As of right now, legal standards require the ASIC to inform the target corporation of such matters.

    The Cupertino California company is well known for its ability to funnel large amounts of money through friendly tax regions with little to no tax implications. When it comes to Australia, Apple is thought to be moving profits through a subsidiary dubbed Apple South Asia Pte Ltd. in Singapore, where it previously managed to negotiate a ten-year tax incentive plan that was rumored to be below 5%. Other corporations based in high-tax countries like the US, including several tech firms also happen to participate in similar practices.

    We’ll have to see what comes of the whole ordeal from Australia and how it affects Apple.

    Source: The Sydney Morning Herald via AppleInsider
    This article was originally published in forum thread: Apple's Annual Tax Payments in Australia May Go Public Soon started by Akshay Masand View original post