We've forced Facebook to pay up: Treasurer

Treasurer Scott Morrison says the government's tax measures have forced multinationals to abandon their tax avoidance structures.

Australia's Treasurer Scott Morrison

Scott Morrison says multinationals are caving-in on attempts to dodge Australian tax obligations. (AAP)

Scott Morrison says multinationals are caving-in on attempts to dodge Australian tax obligations since being faced with the government's suite of avoidance measures.

The treasurer has told parliament social media giant Facebook is now booking its Australian revenue in Australia rather than in Ireland.

"On top of that, Google have also changed their arrangements," he told MPs on Tuesday.

Mr Morrison, quoting tax commissioner Chris Jordan, said multinationals were restructuring to models where sales were booked in Australia.

This year alone the government will claw back $2 billion in revenue from multinationals.

"The Labor Party, when they were in government, did absolutely diddly-squat when it came to the issue of making multinationals pay their fair share of tax," the treasurer said.

Earlier Labor branded a fresh government crackdown on multinational companies a "phoney war" but said it won't stand in the way.

Shadow assistant treasurer Andrew Leigh told parliament the move to impose a 40 per cent tax on diverted profits from July 1 was an attempt to distract from the government's $50 billion corporate tax cut plan.

The legislation also increases penalties for those that breach their tax reporting obligations.

"Labor will support the bill, but we do note that this government are the hollow men on multinational tax action," Dr Leigh told MPs.

The measure, proposed in the last budget, is expected to raise $100 million a year from 2018/19.

Dr Leigh labelled it a missed opportunity, claiming the opposition's proposed tax avoidance measures would bring eight times more revenue.

"The government needs to drop its corporate income tax cut and adopt Labor's plans to get tough on multinational tax avoidance," he said.

The legislation cleared parliament's lower house on Tuesday night.


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Published 21 March 2017 6:08pm
Source: AAP


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