‘ Google and Netflix tax ’
In a move designed to stop profit shifting and tax avoidance by large multinational companies such as Google, the Australian Taxation Office has been given more power to recover unpaid taxes and issue additional fines of 100 per cent of those unpaid taxes, plus interest.
In addition, foreign companies selling digital downloads to Australian consumers will be subject to the goods and services tax (GST). This so-called ‘ Google and Netflix ‘ tax is designed to level the playing field for local companies and would deliver $350 million in extra revenue to the states.
- The ‘Google and Netflix tax’, it is proposed that GST will be payable on overseas supplied digital products from 1 July 2017.
- A range of tax issues recently raised in a Government Discussion Paper weren’t addressed in the Budget, including a broad based review of the GST, tax on personal savings and negative gearing.