Australian Senate Tax Inquiry to Examine Profit Shifting Issues

Australian senators agreed on Wednesday to run an inquiry into a wide range of tax issues, including profit shifting.

Independent Senator Gerard Rennick’s motion called on the senate economics committee to examine “tax arbitrage between onshore and offshore profits that encourage domestic profits to be transferred offshore,” among other tax issues in his Wednesday speech.

Sen. Rennick called for an increase to the rate of withholding tax on profits sent offshore, arguing “tax reform is desperately needed” in Australia.

• The inquiry would question whether “tax arbitrage between onshore and offshore profits puts companies domiciled in Australia at a competitive ...