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Multinationals must stop avoiding tax in Australia and pay "fair share": commissioner

Xinhua, March 3, 2016 Adjust font size:

Australia's Tax Commissioner has called on multinational companies not to flout the nation's tax laws and pay their "fair share" of tax on profits earned in Australia.

Chris Jordon made the statement as part of his annual address to the Tax Institute conference in Melbourne on Thursday, putting pressure on tax advisers to tell their multinational clients to start pulling their weight.

"My message is clear - if you do business in Australia, you must pay your fair share of tax on the profits you earn here," Jordan said in comments published by Fairfax Media on Thursday.

"We can make Australia's tax system the envy of the world through truly contemporary service, expertise and integrity and every one of us here has a role to play."

The issue has been on the Australian government's radar recently.

In September last year, it announced a bold crackdown on multinational tax evasion, making it harder for internationally-based companies to shift profits offshore.

The laws, which came into effect in January this year, apply to companies with global revenues in excess of 730 million U.S. dollars each year.

The measures, championed by former Australian Treasurer Joe Hockey, mean companies that meet this criteria and don't follow Australian tax law can be slugged with heavy penalties, including the doubling of the original amount owed plus interest.

At the time, Tax Institute President Stephen Healey criticized the proposed legislation as "bad tax law" and promoted "uncertainty" for these multinational companies.

Jordon - who was alongside Hockey to trumpet the measures last year - emphasized on Thursday that the Australian Taxation Office wasn't aiming to scare away big business, shooting down suggestions mega companies should hand over 25 to 30 percent of their annual profit margins. Endit