Tax avoidance in resource-rich developing countries should be of concern to the Australian Government which invests in extractives sector development assistance initiatives that aim ‘to support developing countries to maximize sustainable benefits from their natural resources’.

If oil, gas and mining companies operating in developing countries are able to avoid paying their fair share of tax it is impossible for those countries to receive the full financial benefits from resource extraction activities. Instead the ‘resource curse’ and dependency on aid are likely to be perpetuated…