Global Tax Changes Opposed by Miners

The Australian government is planning to impose more laws on global profit-shifting aimed at mining companies so that it will be able to meet the $1.9-billion tax revenue.

This plan is being challenged as General Motors, GE and other companies as they believe this move will only raise uncertainty.

The government is seeking to make the tax changes retrospective, dating back to tax disputes in 2004.

The changes, according to company heads, could result in a “double taxation” with companies facing risks, even as the government said that this plan is to help companies minimize their tax.

Miners, however, are very much against the move. According to one tax manager, from a miner’s perspective, retrospective tax changes can affect investor confidence, making Australia a non-ideal location for capital investments. Global tax arrangements have to be properly set, to appease the concerns of these miners.

But a Labor senator said that mining companies are against this plan because they are actually threatened the changes would affect profits.