Laws have been passed by the Senate today to ensure that
multinational companies pay their fair share of tax, said
Assistant Treasurer David Bradbury.
The Tax Laws Amendment (Cross-Border Transfer Pricing) Bill
(No. 1) 2012 confirms that the transfer pricing rules
contained in Australia's tax treaties and incorporated
into domestic law provide assessment authority in treaty
"Transfer pricing rules make sure that multinational
companies are not able to avoid paying their fair share of
tax by shifting their profits offshore," said Mr
"Profit-shifting can pose a serious threat to
Australia's revenue base. In 2009, related party
cross-border trade was valued at approximately $270
billion, representing about 50 per cent of Australia's
cross border trade flows.
"Robust transfer pricing rules make sure that
Australia's revenues are protected and large
multinational companies pay their fair share of tax."
These changes apply to income years commencing on or after
1 July 2004, being the first income year following
Parliament's last statement demonstrating its long held
understanding that the law operated in this way.
20 August 2012