EDS: NOT FOR USE BEFORE 1600 AEDT, THURSDAY NOV 18
CANBERRA, Nov 18 AAP - Taxation Commissioner Chris Jordan says while Australia needs investment from foreign companies, it should not be premised on no or very little tax being paid on the significant profits of multinationals.
Mr Jordan told a Senate inquiry that dealing with tax avoidance was a key priority for the ATO and that community confidence was dependent on it.
"As the evidence to this inquiry has demonstrated, the ATO is committed to dealing with unacceptable tax behaviour," he said in an opening statement to the hearing into corporate tax avoidance in Sydney on Wednesday.
He said the ATO completed around 50 audits and 350 reviews of large businesses in 2014/15, raising $2.5 billion in liabilities and $1.6 billion in cash.
Currently it has 70 audits and 220 reviews in hand.
Since July 2013 it has conducted more than 200 reviews of multinational companies and has 43 audits in progress, 12 of which are technology companies and three in the pharmaceutical industry.
The multinational program has so far raised more than $400 million in tax liabilities and is expected to raise $1.1 billion.
Mr Jordan also noted a recent federal court decision in favour of the ATO that challenged the complex loan arrangements of Chevron and its multinational affiliates.
"This decision has the potential for wide-reaching effects," Mr Jordan said.
