Media Release: Government’s plan to increase transparency and grow revenue from multinational company tax welcomed by advocates

Tax and transparency advocates welcome the federal government’ plan to raise $1bn more in revenue from multinational corporations and get back $3.7bn in forecasted extra revenue from existing tax compliance programs over 4 years.

The budget announcements come off the back of the ALP’s pre-election commitments to tax transparency and integrity. This includes introducing public country-by-county tax reporting, limiting debt reductions and doing more to stop the use of tax secrecy jurisdiction by multinationals.

Clancy Moore, Chief Executive Officer, Transparency International Australia, said:

“Many multinational companies, including in mining, oil and gas, are generating record profits so we welcome the moves in the budget to improve tax transparency and integrity. With over 700 ASX listed mining, oil and gas companies operating in more than 80 countries, including many with high corruption risks, we look forward to the Australian government boosting transparency for our extractive sector overseas and domestically.” 

Jason Ward, Principal Analyst, CICTAR (Centre for International Corporate Tax Accountability & Research), said:

“The Australian government is showing global leadership. Public country by country reporting for multinationals is long overdue and will increase transparency. These measures will encourage an end to abusive tax strategies that deprive governments worldwide of revenue for essential public services and begin to level the playing field for local businesses that already pay a fair share and contribute to the communities where profits are generated.”

Dr Mark Zirnsak, spokesperson for the Tax Justice Network Australia said:

“We look forward to the government following through on its commitment to join the global efforts to make sure large multinational corporations pay at least 15% in tax, regardless of the artificial legal structures involving tax havens that these corporations use.

 “Also, the Government must undertake reforms from its consultation to tighten up the test for corporations that bid for government contracts. Businesses involved in tax evasion and tax avoidance should not continue to enjoy a competitive advantage over businesses that pay their taxes as they should.”