Tax administrators from OECD, G-20, and other nations are working together on a project to map of the global operations of selected MNEs engaged in the digital economy, Australian Second Commissioner Neil Olesen said November 28.
“In today’s world, multinationals operate seamlessly across borders and take a global, top-down view to structure their operations across countries for maximum economic advantage. As tax administrators, we need to do the same. We will remain at a disadvantage unless we move from taking an isolated, single country view and replace it with a global, bigger picture view, Olesen said, in comments before the Institute of Public Accountants National Congress in Hunter Valley.
Olesen said that the current level of collaboration between tax administrators is unprecedented, allowing them to better understand and to compare financial reporting by multinationals in different countries.
“We are testing [multinational corporations’] assertions and arrangements as to how they fit with our existing law,” he said.
Olsen said that the prototype for the joint project was a collaborative effort between Australia and five other nations. The effort, announced by ATO Deputy Commissioner, International, Mark Konza, on May 22, is reported to involve China, Japan, the UK, and the US.
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