How to Take Advantage of Corporate Simplification in the Australian Market
In July 2021, finance ministers at all member states of the G20 summit agreed to make a change to the international tax code that will have massive repercussions for how all multinational corporations will pay taxes.
Up until now, large multinational corporations have been able to skirt high income tax rates by moving their headquarters and central production operations to countries that have low tax rates, allowing them to choose the lowest possible tax rate. As this system of corporate taxation dates back to just after World War I, organisations old and new have spent massive amounts of time and money to develop efficient ways to take full advantage of these countries with lower tax rates.
In Australia, there is a high level of interplay between foreign and domestic company ownership and management of large corporations, resulting in a complicated tax code. Many large industries, although headquartered in Australia, are majority owned by foreign groups.
Choosing not to simplify your organisation’s corporate structure may come with its own significant risks over the next few years. This guide outlines the four primary benefits of simplifying your organisation now.