Tax dodger crack down to swell budget coffers

Tougher laws and stronger compliance will attempt to close the net on tax avoiding companies, including multinational giants operating in Australia.

 

Tonight’s budget introduced the Diverted Profits Tax, which will impose a 40 per cent penalty rate of tax on multinational corporations that attempt to shift their Australian profits offshore to avoid paying tax.

 

The tax is expected to raise around $650 million over the next four years from large multinationals.

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To assist the ATO in the crack down, the new Tax Avoidance Taskforce will provide greater firepower to stop all tax dodgers.

 

The Taskforce is expected to raise $3.7 billion in additional government revenue as it will also target Australian businesses and high wealth individuals.

 

The government will also strengthen the protections for whistleblowers who come forward and report tax avoidance.

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“Everyone has to pay their fair share of tax – especially large corporates and multinationals – on what they earn here in Australia,” treasurer Scott Morrison said in his budget speech.

 

“The Turnbull government has been listening to the Australian people on this issue and is taking action.”

 

Morrison added that the Tax Avoidance Taskforce would include more than 1,000 specialist staff in the ATO to police and prosecute companies and individuals.