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Pay tax or lose assets: Scott Morrison warns foreign companies
Updated ,first published
Foreign companies that don't pay their fair share of tax could be forced to sell their Australian assets under a new federal government plan.
Requirements on foreign investment applications will ensure multinational companies investing in Australia pay tax on what they earn here.
"Where companies fail to do so I will have powers to take action, including ordering divestment of Australian assets," Treasurer Scott Morrison said in a statement on Monday.
Foreign investment applications will have to comply with Australian taxation law and tax office directions to provide information.
Companies will be required to advise the tax office if investors enter into any transactions with non-residents to which transfer pricing or anti-avoidance measures of Australian tax law applies.
Additional conditions may also be applied where a significant tax risk.
A breach of conditions could result in prosecution, fines and potentially divestment of the asset, Mr Morrison said.
AAP