It is nearly impossible to stop multinational companies such as Apple and Google dodging tax, the Treasury in Australia has said.
It added that Australia must focus its efforts on an international crackdown led by the G20 and the OECD.
According to smh.com.au, the Treasury warned that many of the risks posed by profit shifting by multinationals were underpinned by deeply entrenched features of Australia's corporate tax system.
The Treasury said the failure of international tax rules to keep pace with changes in global business posed significant risk to Australia's tax system.
It was revealed last year that Google's Australian office paid just 74,000 dollars in tax in 2011, despite estimates of its revenue from Australian ads reaching two billion dollars.
