25 Jul 13 Scoping Paper released on Risks to the Sustainability of Australia’s Corporate Tax Base
In media release No 2013/139, issued 24 July 2013, the Assistant Treasurer, David Bradbury, announced the release of a Treasury scoping paper examining the risks to the sustainability of Australia's corporate tax base.
"I commissioned this report in November 2012, in response to the emerging challenges of multinational profit shifting and the erosion of Australia's tax base," the Assistant Treasurer said.
The paper sets out possible unilateral responses to these risks, including more regular reviews of tax treaties and regular reporting on the health of the business tax system, but particularly emphasises the need for a co-ordinated international response.
A principal recommendation of the paper and a key plank in global cooperation to tackle base erosion and profit shifting is the endorsement of the recently released OECD Action Plan. This Plan was strongly supported at the recent G20 Finance Ministers meeting
"The international tax rules are not keeping up with the changes of the digital age...This report signals the need for multilateral cooperation to re-examine the out-dated international tax settings which govern many aspects of the international tax system," the Assistant Treasurer said.