Google Australia allegedly paid no tax on an estimated $940 million in web search advertising revenue. Taxpayers protested outside of the British branches of the coffee chain Starbucks after it was revealed the corporate giant was recording tax losses despite making billions of dollars of sales over a 14-year period. G20 leaders agreed to secure new global standards for tackling tax evasion and avoidance due to erosion of corporate tax and profit shifting.
Worldwide tax avoidance has never been bigger. But down at the Australian Taxation Office, as Fairfax reports today, some boffin wants to let big accounting firms sign off on tax returns without further investigation by the Tax Office. The accountants must be laughing. But will consolidated revenue be the big loser?