CE Companies Under ATO Microscope As Treasurer Labels Tax Cheats “Thieves”
Yesterday Treasurer Joe Hockey labelled tax cheats “thieves” and vowed to give the Tax Office whatever laws it needs to investigate Companies that are using elaborate but legal tax avoidance methods.
Companies such as Hewlett Packard, Acer, Toshiba, Google, Apple are all in the Tax Offices cross hairs along with up to 40 smaller CE Companies.
Yesterday Fairfax Media revealed details about Chevron’s alleged $258 million tax avoidance scheme, which tax authorities claim involved an elaborate system of loans and inter-party payments worth billions.
Speaking in Washington before chairing a G20 finance ministers meeting, Mr Hockey said member states were determined to use all available resources to close tax loopholes especially among “high tech” Companies.
“Taxpayers have the opportunity to challenge decisions by the Australian Taxation Office in court and the Australian Taxation office has the opportunity and the resources to defend its position,” he said.
Hockey said there was “no shortage of resources in the Australian Taxation Office, none at all, particularly when it comes to litigation.”
“I will give the Australian Taxation Office whatever laws it needs to ensure that the integrity of our taxation laws is upheld,” he said.
Mr Hockey’s comments come as concern around corporate tax avoidance reaches fever pitch ahead of the G20 leaders’ summit in Brisbane next month.
Content Company 21st Century Fox, formerly called News Corporation, was recently named in a report by the Tax Justice Network as paying less than 1 per cent tax.