Crackdown on overseas tax avoidance
Draft laws stopping multinational companies leveraging their Australian assets with debt, to reduce their tax burden have been released for public comment.
The “thin capitalisation” rules prevent multinationals from shifting profits offshore by using excessive levels of tax-deductible debt to fund their Australian operations.
“This will further reinforce the government’s commitment to the integrity of Australia’s tax system and ensure multinationals pay their fair share of tax,” Treasurer Scott Morrison said on Wednesday.
