Tax-avoiding tech giants on govt radar

Rebecca Gredley
(Australian Associated Press)


Australia wants to know how it can get hugely profitable tech companies like Apple, Facebook and Google to pay more tax.

Treasurer Josh Frydenberg has called for submissions on a discussion paper to develop a “fairer and more sustainable tax system for the digitalised economy” to ensure a level playing field for businesses.

“The government remains concerned that some very profitable, highly digitalised companies pay very little tax in the countries in which they do business,” he said in a statement on Tuesday.

Mr Frydenberg reaffirmed Australia’s commitment to working with other nations through both the G20 and the Organisation for Economic Co-operation and Development, to crack down on multinational tax avoidance.

The federal government has also written to Secretary-General of the OECD Angel Gurria, to offer assistance on developing an appropriate international tax system.

Facebook, Google and other large tech companies make significant amounts of money in Australia but employ very few people and use complex legal arrangements in a bid to pay tax overseas.

Submissions close November 30 via the Treasury website.


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Categories: Tax