Leaders or Laggards? Tax and Revenue Transparency of ASX listed mining, gas and oil companies
COVID-19 demonstrates the importance of well-funded health care, social protection systems and the value of transparency in data and decision-making. Now more than ever, governments need revenues from taxation to fund essential public services for their citizens. Tax avoidance, offshore secrecy, and tax breaks to attract investment all divert potential revenues. The OECD has identified the extractive industries as the world’s most corrupt economic sector. The starting point for tackling corruption, poor governance and tax non-compliance in the extractives sector is transparency.
This new research produced by Ethical Partners and Publish What You Pay shows that ASX listed mining, gas and oil companies are falling behind key transparency measures in comparison to listed companies in other resource rich nations and comparable economics such as the EU, UK and Canada. Only three of top twenty companies are required to publicly report all payments to governments (taxes, royalties, bonuses, fees and other payments) on a country-by-country, project-by-project basis as they are dual listed and covered under mandatory disclosure laws in the UK.
If the Australia chose to implement equivalent legislation to laws in place in the UK, EU, Canada, Norway, Switzerland and awaiting implementation in the US, it would significantly level the playing field, reduce corruption risks and increase transparency for Australian investors, companies and citizens.
In conjunction with the research report, Publish What You Pay has released new polling of 1042 Australians from July 6 conducting by Lonergan Research which shows:
Most (93%) Australians believe the government should do more to promote transparency in the mining, gas and oil sectors.
Three quarters (77%) of Australians believe Australian mining, gas, and oil companies should contribute more in taxes to help Australia recover from the impact of COVID-19.
7 in 10 (71%) Australians believe Australian mining, gas, and oil companies should contribute more in taxes to help developing countries where they do business respond to COVID-19.
88% if Australians believe the government should make Australian mining, gas and oil companies publish the taxes they pay at a project level both in Australia and overseas
3 in 4 (74%) Australians believe Australian mining, gas, and oil companies should publicly disclose donations.
4 in 5 (80%) Australians believe their superannuation fund / investment manager should advocate on their behalf with mining, gas and oil companies to be more transparent around taxes and revenues paid to governments here and abroad.
Contact: Clancy Moore, 0410 508 051 / clancy.moore@actionaid.org for more information.