TAX PLANNING – AUSTRALIA

BHP faces fight over $1bn tax bill

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Original article by Ben Butler
The Australian – Page: 19 & 27 : 21-Sep-16

BHP Billiton CFO BHP Peter Beaven has defended the resources group’s use of a Singapore marketing hub, describing it as a "legitimate, stand-alone business". BHP states in its annual tax transparency report that it has received a revised tax assessment of $A537m from the Australian Taxation Office for 2009 to 2013. It had previously been issued with a revised tax bill regarding its Singapore operations of $A362m, covering the years 2003 to 2008. The ATO has also ordered BHP to pay an additional $A117m in minerals resource rent tax for 2013.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, NATIONAL PARTY OF AUSTRALIA, STEIN INSURANCE, APPLE INCORPORATED, GOOGLE INCORPORATED, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Bullion and coins seized as police spread the net wider

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 3 : 7-Sep-16

Australia’s Justice Minister Michael Keenan has confirmed that a joint operation has carried out a series of raids in Queensland against clients of Panama-based law firm Mossack Fonseca. The Australian Federal Police, the Australian Criminal Intelligence Commission and Australian Taxation Office operation resulted in the seizure of 170kg of silver bullion and coins as part of the investigation into the use of offshore tax havens by high net worth individuals.

CORPORATES
AUSTRALIAN FEDERAL POLICE, AUSTRALIAN CRIMINAL INTELLIGENCE COMMISSION, AUSTRALIAN TAXATION OFFICE, MOSSACK FONSECA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALISTS

ATO drops boom on marketing hubs

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 1 & 6 : 10-Aug-16

The use of offshore marketing hubs by resources groups will attract greater scrutiny from the Australian Taxation Office. The proposed crackdown will result in such companies being subject to stricter auditing and disclosure requirements if they are not completely transparent about their marketing arrangements. BHP Billiton and Rio Tinto both use marketing hubs in Singapore, while the ATO is concerned that the oil and gas industry may pursue profit-shifting arrangements as LNG exports ramp up.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, BP PLC, ROYAL DUTCH SHELL PLC, EXXONMOBIL CORPORATION

Tax crackdown will be far reaching

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Original article by Joanna Mather
The Australian Financial Review – Page: 17 : 5-May-16

The Corporate Tax Association’s Michelle de Niese says the diverted profits tax outlined in the Australian Government’s May 2016 Budget may prove to be broader in scope than a similar tax in the UK. Companies found to have engaged in profit-shifting will face a tax rate of 40 per cent on such profits, compared with the corporate tax rate of 30 per cent. Mark Konza of the Australian Taxation Office adds that the new tax may affect more taxpayers than the multinational anti-avoidance law, which was introduced in 2015.

CORPORATES
CORPORATE TAX ASSOCIATION, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RSM PTY LTD, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, NETFLIX INCORPORATED

Tax crackdown to hit profit shifting

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Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 2 : 19-Apr-16

The Australian Government is expected to make changes to thin capitalisation rules in order to curb multinational tax avoidance. The changes, to be announced in the May 2016 Budget, would reduce the amount of debt which multinational companies are allowed to take through their Australian operation from 60 per cent to 50 per cent. The reduction in the "safe harbour" debt-to-assets ratio could lead to accusations of discouraging foreign investment in Australia.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, INTERNATIONAL TRANSPORT WORKERS’ FEDERATION, KPMG AUSTRALIA PTY LTD

ATO targets 800 wealthy in global tax haven probe

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 1 & 6 : 4-Apr-16

The records of several thousand Australian clients of Panama-based law firm Mossack Fonseca are among the 11 million-plus documents that have been leaked. The Australian Taxation Office has confirmed that it is investigating the tax affairs of more than 800 high-net-wealth Australians who are clients of the firm. Mossack Fonseca’s clients include companies and individuals who have previously been the subject of the "Project Wickenby" probe into tax evasion.

CORPORATES
MOSSACK FONSECA, AUSTRALIAN TAXATION OFFICE, INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALISTS, AUSTRALIAN FEDERAL POLICE, AUSTRALIAN CRIME COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, COMMERZBANK AG, BHP BILLITON LIMITED – ASX BHP, STRACHAN SA, RIO TINTO LIMITED – ASX RIO, ANCHORVILLE HOLDINGS LIMITED, SAMOA INTERNATIONAL FINANCE AUTHORITY, TOLL HOLDINGS LIMITED, HENDRICKS DEVELOPMENT LIMITED, STEPPE FILMS INTERNATIONAL LIMITED, FITALL DEVELOPMENT LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, GLOBAL WEALTH GROUP, GUARDIAN CARE PROPERTIES, FOOTBALL FEDERATION AUSTRALIA LIMITED

Australians worry about cross-border tax dodges

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Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 1-Apr-16

A survey commissioned by Australian accounting firm BDO suggests that tax avoidance by international companies is considered to be a serious problem. BDO’s tax chief, Mark Molesworth, says 20 per cent of survey respondents regarded profit shifting by multinationals as the country’s biggest tax problem, followed by the GST and state taxes.

CORPORATES
BDO CHARTERED ACCOUNTANTS AND ADVISERS, APPLE INCORPORATED, CHEVRON CORPORATION, GLAXOSMITHKLINE PLC

Don’t play me for a fool, tax chief tells tech giants

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Original article by Adam Creighton
The Australian – Page: 2 : 11-Feb-16

Australia’s Commissioner of Taxation, Chris Jordan, has told a Senate committee that he is prepared to pursue legal action against multinational companies that continue to evade their tax liabilities. He said six companies have now been identified by the Australian Taxation Office as being at the highest risk of non-compliance with their tax obligations, while it is reviewing the tax affairs of 290 large companies.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, APPLE INCORPORATED, MICROSOFT CORPORATION, CHEVRON CORPORATION, ORICA LIMITED – ASX ORI

Innovation tax breaks could be rorted

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Original article by Ben Potter
The Australian Financial Review – Page: 9 : 21-Dec-15

The Treasury has downplayed concerns that the Australian Government’s proposed tax incentives for investing in business start-ups could be subject to abuse. Grattan Institute CEO John Daley recently warned that promoters of tax schemes will seek to capitalise on the measures in the Government’s innovation statement, but a Treasury spokesman says Australia boasts strong anti-avoidance laws.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, GRATTAN INSTITUTE, MELBOURNE ECONOMIC FORUM, AUSTRALIAN NATIONAL UNIVERSITY, INNOVATION AND SCIENCE AUSTRALIA, UNIVERSITY OF MELBOURNE, VICTORIA UNIVERSITY

PM deflects barbs over tax haven

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Original article by Phillip Coorey
The Australian Financial Review – Page: 11 : 15-Oct-15

Prime Minister Malcolm Turnbull has been accused by the Australian Labor Party of having investments in companies registered in the Cayman Islands. Labor senator Sam Dastyari said on 14 October 2015 that it is inappropriate for Turnbull to have investments in a tax haven. In response to Dastyari’s accusations, Turnbull said his investments were made in accordance with the ministerial code of conduct.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY