The Albanian government has announced its intention to tackle multinational companies that avoid tax and has launched a discussion paper on the issue.
Treasurer Jim Chalmers said the discussion paper would be open to public consultation on how large companies would pay a fairer amount of tax.
“Multinational corporations that make a profit in Australia should pay their fair share of taxes in Australia,” he said.
“Our multinational tax package will close tax loopholes exploited by multinationals and improve tax transparency,”
Submissions to the newspaper close on September 2.
The paper follows Labor’s election pledges and pledges to support a 15 percent minimum tax on the profits of some of the largest multinationals.
In addition to limiting deductions multinationals can claim on interest payments, Labor also pledged to limit the ability of multinationals to abuse tax treaties in Australia while holding intellectual property in tax havens.
The 15 percent minimum tax on multinationals was part of the OECD framework endorsed by Australia and other G20 countries last year.
The discussion paper examines the implementation of the OECD framework, along with measures to increase transparency, such as public reporting.
“We don’t let multinationals take the brunt of their tax obligations and make sure they pay their fair share of taxes,” said Dr. Chalmers.
“These commitments are measured and targeted, with no unnecessary handbrakes on real business activity.”
It comes after Rio Tinto handed over nearly $1 billion in taxes to the Australian tax office last month, following a 10-year dispute with the tax office.
The settlement over an investigation into Rio Tinto’s marketing center in Singapore was one of the largest in Australian tax history.
It followed the path of other multinationals that had to pay, including Google, BHP, Apple and Microsoft.