Surprise: Google Tax Canned
But – surprise, surprise -Treasurer Joe Hockey’s promise of a so-called “Google tax” to be imposed on companies diverting Australian profits to countries such as Ireland or Singapore – is being dumped, according to widespread reports.
The Government’s Expenditure Review Committee has shelved plans to implement the diverted profits tax, which under Joe’s plan would have been similar to that of the United Kingdom.
The move is being promoted as consistent with Prime Minister Tony Abbott’s policy of avoiding imposing new taxes to differentiate the Coalition from Labor.
But just over a month ago Joe Hockey was openly floating his plan for a Google Tax, saying he would go after “tax thieves” by following the lead of the UK Government’s 21 percent diverted profits tax (CDN, April 2).
“We are determined to do it,” said Joe, at the time, adding: “I see people who do not pay the legitimate level of tax in Australia as thieves.” So it goes .