The Federal Government has flagged its intention to improve the transparency of the country’s business tax system, with a specific eye on improving practices surrounding large and multinational businesses.

"Large multinational companies that use complex arrangements and contrived corporate structures to avoid paying their fair share of tax should not be able to hide behind a veil of secrecy," said Assistant Treasurer David Bradbury.

Mr Bradbury said that putting tax payer confidentially at the forefront is key, but recent events in Australia and around the world had called into question whether large and multinational businesses should enjoy the same level of confidentiality as the average taxpayer.

Mr Bradbury said that the Government would now explore ways to improve the sharing of tax information between the ATO and key corporate regulators, such as the Foreign Investment Review Board, ASIC and the Australian Prudential Regulation Authority.

“That is why I have asked Treasury, in consultation with the Specialist Reference Group on Ways to Address Tax Minimisation of Multinational Enterprises I announced in December last year, to develop the details of how changes could be implemented," said Mr Bradbury. In particular:

  • How the policy could best be designed to cover large and multinational businesses, including whether a threshold test would be appropriate;
  • Which federal taxes should be disclosed; and
  • How the tax information should be made publicly available.

Following the first meeting of the Specialist Reference Group later this month, the Government will consider the advice from Treasury and views of the community to assess what changes are appropriate, with a view to introducing any necessary legislative changes this year.