Statement 1: Budget Overview (Continued)
Protecting the corporate tax base from erosion and loopholes
The Government will move to protect the corporate tax base from erosion and loopholes. Protecting the corporate tax base will contribute to a sustainable fiscal position that is essential to Australia's future prosperity. These measures address a number of tax planning strategies used by multinational enterprises and large domestic companies to exploit design flaws, vulnerabilities and unexpected interactions in Australia's corporate tax laws.
This package of measures directly addresses these weaknesses by:
- addressing aggressive tax structures that seek to shift profits by artificially loading debt in Australia;
- better targeting resource sector concessions for depreciating assets to support genuine exploration;
- improving the integrity of, and ensuring better compliance with, the foreign resident capital gains tax regime;
- closing down loopholes in the Offshore Banking Unit and consolidation of business entities regimes;
- preventing sophisticated investors from engaging in 'dividend washing'; and
- increasing ATO compliance checks on offshore marketing hubs and business restructures.
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