ATO gets serious with the ‘Big Boys’
Following an interview that the ATO gave to the financial review, it was reported the ATO is investigating 86 multinational companies in Australia. While ATO Deputy Commissioner, Mark Konza, says the Tax Office cannot name the companies been investigated, it is arguable that Apple and Google are on the list, given the raft of media reports of profits being apparently ‘legally’ transferred into lower tax regimes such as Singapore are Ireland. ” At the moment, and i should say this process is ongoing, so other causes will be identified over time, these 86 cases where we feel the structuring of the events that had taken place seem to have a very bad effect on a company’s Australian tax position or Australian profitability,” he said. “We will issue assessments on companies that we think weren’t applying the law correctly. If they’re involved in profit shifting, the will get an assessment, they will get penalties as well.” Under the ATO program, believe to involve about 100 Tax Office staff, a four year investigation has begun into the tax affairs of big global companies, operating in Australia, with special focus on their transfer pricing activities.
New powers: Mr Konza says the ATO has recently been given extra powers to prevent profit shifting. ” We have new transfer pricing only 18 months old, i think that has given us extensive power regarding the correct pricing of transactions, which is what we’re mainly examining,” he added. “So, we’ll be looking to see how that law works when we take it into these cases.” Mr Konza is confident that at least some of the 86 companies being investigated will have legal action launched against them.
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