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Australia Should Take Consensus Approach on Tax Pact, Groups Say

Nov. 1, 2022, 7:26 PM

Australia shouldn’t deviate too much from the ways in which other countries plan to adopt the provisions of the OECD global tax agreement, two US-based business groups said Tuesday.

The benefits of taking a common approach to taxation “begin to fall apart if jurisdictions adopt conflicting or inconsistent implementing legislation and regulations,” the National Foreign Trade Council and the Information Technology Industry Council said in a joint comment letter to the Australian Treasury.

  • The Treasury should “resist any temptation” to graft its own domestic tax concerns onto the OECD’s model rules implementing the agreement, the groups said.
  • Australia has been seeking public comment on how it should adopt the global tax pact, which would impose a 15% global minimum tax and reallocate some multinationals’ profits to other countries.
  • Australia should also make sure its time frame for implementation is aligned with that of other countries, the NFTC and the ITI said.

To contact the reporter on this story: Michael Rapoport in New Jersey at mrapoport@bloombergindustry.com

To contact the editors responsible for this story: Vandana Mathur at vmathur@bloombergtax.com; Meg Shreve at mshreve@bloombergindustry.com