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A large accounting firm has released a report, saying multinational corporations need to move fast to counter bad media publicity rather then pay more tax.
Starting in November 2015, the Australian Tax Office will begin publishing the tax details of public companies with more than 100 million Australian dollars (77.9 million U.S. dollars) in turnover.
Fairfax Media reported one of Australia's largest accounting firms, EY, released a report titled A New Mountain to Climb for its clients on Thursday, acknowledging the reputation of multinational corporations operating in Australia has declined.
However, the report recommended companies develop "watertight documentation and audit trails" rather then concede there are genuine grounds for the public discontent in Australia about the lack of tax paid by multinational corporations.
Last week, Fairfax Media revealed American Express received a net tax gain of 3.3 million Australian dollars (2.57 million U.S. dollars) on multi-billion dollar profits earned in Australia.
It is believed EY and other large accounting firms developed the minimization schemes, such as base erosion and profit shifting that large multinational companies operating in Australia, like American Express, use.
The EY report said that sweetheart deals made with tax havens or low-tax nations are no longer within community norms and that "public opinion is driving political action."
"If a company doesn't proactively manage the increased reputational risk posed by the ongoing 'fair share of tax' debate, its image can be quickly tarnished," the firm said.
A spokesperson for the Australian Treasurer Joe Hockey said the Australian government is determined to protect Australia's tax base and ensure all businesses pay their fair share of tax.
