Senate inquiry backs tax avoidance bill

A Senate committee has recommended the government review proposed multinational tax avoidance measures within three years to ensure they stop companies siphoning profits offshore.

An inquiry into a government bill to crack down on companies shifting profits to escape Australian tax endorsed the legislation, saying it strikes the right balance between tax avoidance and excessive compliance burdens.

However, the report, released on Monday, also recommended a review of the laws in 2018 to test effectiveness amid Labor concerns the measures are largely untested and don't go far enough.