Andy Hutt reviews the recently released Corporate Tax Avoidance Inquiry final report.
The Senate Economics References Committee has released its final report on corporate tax avoidance after an inquiry lasting more than three years.The issue of corporate tax avoidance was first referred to the Committee in October 2014, and the inquiry has yielded recommendations from the Committee that cover the following:
The Coalition Senators on the Committee noted that they do not support the recommendations regarding thin capitalisation and the release of CbC Reporting data. They also recommended that no action be taken on PRRT until after the release of the Callaghan report.
The final report also highlights that since 2014, Parliament has enacted several new laws to address base erosion and profit shifting, including:
Businesses should be prepared for the possibility that a number of these recommendations may be adopted over time. In the case of transparency measures, considerable thought is required as to what information would provide value to the public in a tax context.
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