Tax plan could backfire, Rio Tinto warns
RIO Tinto says the federal government's plan to crack down on the tax minimisation strategies used by global companies such as Google and Amazon could ''come back to bite'' Australia if other countries started doing the same.
The comments by the mining company came as federal Assistant Treasurer David Bradbury cautioned that Australia's corporate tax base risked becoming unsustainable if authorities failed to keep pace with dramatic structural changes in the global economy.
Mr Bradbury outlined plans to convene a specialist reference group of business leaders, tax experts, academics and community representatives to examine measures to combat the practice.
He said the digital disruption brought about by the internet and changes in technology had transformed the way economic activity was occurring and these changes were putting pressure on the corporate tax system in Australia.
''Increasingly, governments are discovering the lack of effectiveness in the digital age of international tax concepts created for the industrial age,'' Mr Bradbury told an Institute of Chartered Accountants national tax conference.
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