Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

It was chosen, firstly, based on the consultation and, secondly, because this is following the precedent that was set in the United Kingdom in their equivalent diverted profits tax scheme. The view is that, if you capture more, you end up tying up the ATO in audits and investigations in relation to lower risk businesses. We want to focus, obviously, at the right end and we want to make sure that the scheme is properly targeted. But the short answer is: it is based on consultation and it is based on what was chosen in the United Kingdom, where this measure was introduced a while ago.