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  • E-commerce and digital economy outcomes for the Tax Avoidance Taskforce

    The rapidly evolving nature of the e-commerce and digital economy industry has significantly transformed the way multinational enterprises (MNEs) conduct their operations resulting in complex arrangements and emerging business models. This has led to highly complex and often unique business and financial structures for these companies. As a result of the proliferation of artificial structures aimed at tax minimisation, the industry was chosen as a focus area in our ongoing efforts to ensure an even playing field for all taxpayers.

    We have recently finalised a large program of work focusing on the e-commerce and digital economy industry. Our efforts have seen MNEs operating in this industry significantly increase the profits declared and the tax they pay in Australia.

    As at 30 June 2018, some of the key achievements include:

    • over $1 billion in cash collections
    • future revenue effects of more than $580 million over the next four years
    • the completion of many complex audits on industry leading e-commerce MNEs.

    It is important to understand your obligations as a business to properly report income earned in Australia. More information about the Tax Avoidance Taskforce and the reporting requirements for businesses, including new legislation, is online at ato.gov.au/taxavoidancetaskforce

      Last modified: 06 Dec 2018QC 57576