Australia’s Treasury on July 6 released draft laws introducing country-by-country reporting documentation standards and doubling administrative penalties for multinational entities that have entered into tax avoidance or profit shifting schemes.
Both measures were first announced in the 2015 budget on May 12. Comments on the discussion drafts are requested by September 2.
The country-by-country reporting rules follow standards developed under the OECD/G20 base erosion and profit shifting plan.
The draft penalty provisions apply to large companies that enter into tax avoidance or profit shifting schemes and that do not adopt a tax position that is reasonably arguable. For such companies, the maximum administrative penalty would be 120 percent of the amount of avoided under the scheme. Current law provides for a penalty of 60 percent of that amount.
Both measures, and draft antiavoidance rules released in May that are aimed at multinationals that artificially avoid taxable presence in Australia, apply only to companies with annual global revenue of $1 billion.
The government said it is examining how to calculate annual global revenue for purposes of all three laws.
The goverment also released in May draft legislation that would extend the goods and services tax to cross-border supplies of digital products and services imported by consumers.
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