What country successfully legislated a new Diverted Profits Tax and what is its effect on multinational companies?
On 1 July 2017, the Government proposes to apply a diverted profits tax (DPT) (popularly known as a ‘Google tax’). This will apply where companies shift profits offshore through arrangements with related parties in jurisdictions with lower corporate tax rates than apply in Australia. Broadly based upon similar legislation introduced in the UK in 2015 , this new tax will apply to large companies with global revenue of $1 billion or more where their tax arrangements:
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