From July 1, 2023, companies headquartered in Australia and elsewhere, with a nexus therein with a consolidated global revenue of at least $690 million, will be required to make a public declaration of the Country-by-Country Report.
Background
On October 25, 2022, the Australian government announced a new tax amendment in the country, which entailed public Country-by-Country reporting. Due to this decision, Australia will break new ground by requiring large multinational corporations such a public declaration.
Previously, countries under Action 13 of the BEPS project required multinationals to file Country-by-Country reports privately to comply with the OECD guidelines.
Reasons for the Amendment
Although this fact passed unnoticed by the Australian media, this new rule would mean a strong boost to the fight against corporate tax evasion in Australia.
The International Consortium of Investigative Journalism (ICIJ), in its investigation on tax havens, revealed that multinationals allegedly moved one billion dollars to tax havens to avoid paying taxes, generating a large loss of revenue for governments.
On the other hand, the Center for International Corporate Tax Research and Responsibility revealed that multinationals diverted money using Australian old people’s homes. Likewise, the Australian Taxation Office provided the following information: Almost 800 large companies did not pay taxes during 2020 and 2021, losing 5510 million dollars a year.
Finally, the Australian government can set a precedent for other countries if it complies with the Global Reporting Initiative and requires multinationals to public Country-by-Country Reporting.
Fuente: IPS Noticias 14/02/22
