“The Australian government on Monday announced a world-leading crackdown on alleged tax avoidance by 30 multinational companies in a move that could force the likes of Apple Inc and Microsoft Corp to restructure their businesses to escape huge penalties,” Jane Wardell reports for Reuters. “‘These companies are diverting profits earned in Australia away from Australia to no-tax or low-tax jurisdictions,’ Treasurer Joe Hockey told reporters in Canberra.”
“He declined to identify the targets, but said ‘it’s pretty evident which companies are involved.’ Google Inc, Apple Inc and Microsoft Corp revealed earlier this year they were under review by the Australian Tax Office,” Wardell reports. “Hockey did not detail the content of the proposed new laws, but said they would not contain a profits diversion tax like the ‘Google tax’ introduced by Britain on April 1.”
Wardell reports, “One country watching more warily than most may be the United States, which originally backed the G20 crackdown but has since become concerned about Britain, Australia and other nations lining up against U.S. digital companies as they seek extra revenues to trim budget deficits.”
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MacDailyNews Take: Apple’s giant stinkin’ pile of money attracts all sorts of greedy flies.
Oh, BTW: Tax avoidance is perfectly legal.