Tax firm fights Feds

An international tax accounting firm is taking legal action against the federal government over its so-called ‘backpackers tax’, claiming it discriminates against foreign workers in contravention of tax treaties Australia has with eight countries.

The controversial tax was introduced in January 2017 and imposes a 15 per cent impost on working holiday-makers, such as fruit pickers, which Taxback.com said in a statement on Monday ran in direct conflict with Australia’s obligations under multiple international tax arrangements.

“Having lodged our pre-action letter, we have been extremely encouraged by the willingness of the Australian government to come to the table for talks. It is our preference to resolve this issue through a mediated solution and we look forward to collaborating on this,” Taxback.com commercial director Eileen Devereux said.

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