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Avoidance of Tax Return by Foreign Companies

Discussion in 'Commercial Law Forum' started by David Positas, 17 September 2015.

  1. David Positas

    David Positas Member

    17 September 2015
    Likes Received:
    How liable are Australian companies if their majority owned "foreign" companies are avoiding local (of foreign country) income tax return by offshore payments made to the employees. The Australian company in the case is majority shareholder of the local (foreign) company avoiding the income tax return.

    Contracts of the offshore payments are signed under the Australian majority shareholders name.

    Thanks in advance
  2. Sophea

    Sophea Guest

    Hi David,

    Is your question whether this is legal? This time last year the senate referred an inquiry into corporate tax avoidance to the Senate Economics References Committee for inquiry with reference to Tax avoidance and aggressive minimisation by corporations registered in Australia and multinational corporations operating in Australia.

    Tax amendment laws have now been drafted and are in the process of being put through parliament. Here is a link to the second speech reading of the Bill. Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 | The Hon Joe Hockey

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