Big business to explain tax practices

Big businesses will front a Senate inquiry into corporate tax avoidance practices such as profit shifting this week.

Tech and mining giants will explain to senators this week how they pay the right amount of tax in Australia and fully comply with laws.

A parliamentary inquiry into corporate tax avoidance, instigated by the Greens and Labor, will hold public hearings across the country on Wednesday, Thursday and Friday.

The Greens want to make sure companies operating in Australia pay their fair share of tax.

"I want to hear why it's not reasonable for us to be able to know all the subsidiaries (companies) have, where they are located, what their practices have been in terms of their profit shifting," leader Christine Milne told ABC radio on Tuesday.

Liberal senator Sean Edwards, the committee's deputy chairman, says the government has tax minimisation and profit shifting well and truly in its sights.

Technology companies Apple and Microsoft have told the Senate committee they paid tax at an effective rate above the 30 per cent corporate tax rate in the past few years.

Apple says pushes for further transparency around tax arrangements need to make sure companies aren't forced to release commercially sensitive information.

It's also worried about potential for information about revenue and tax to be misunderstood.

Representatives from the two companies, along with Google, will give further evidence to the committee on Wednesday.

Google says discussions about international tax policy are best left to the OECD - a view shared in many of the 91 submissions to the inquiry.

The Business Council of Australia cautions that countries moving alone to crack down on international tax arrangements and profit shifting could in fact undermine OECD and G20 efforts.

The committee will also hear from the tax office on Wednesday, Treasury on Thursday and mining companies Rio Tinto, Fortescue and BHP Billiton on Friday.

The tax office on Tuesday said BHP Billiton and Rio Tinto are in its sights amid claims the mining giants are avoiding paying hundreds of millions of dollars in tax.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world