The Australian Tax Office says it has identified 175 companies that may face action under the Government’s Multinational Anti-Avoidance Law (MAAL), which aims to address the problem of multinational companies using loopholes to minimise tax paid in Australia.
That’s quite a sharp increase on the 60 companies that tax commissioner Chris Jordan recently told Senate estimates the ATO was targeting. Those were believed to include Apple, Google, Microsoft and miners BHP Billiton and Rio Tinto
The Tax Office has now sent warning letters to 136 multinationals, all of which may be subject to tough penalties as a result.
The ATO has invited suspect companies to “come forward” to discuss their offshore financing arrangements and many have responded by restructuring their tax arrangements in response to the new law
