LABOR’S TAX EXCHANGES NET $730 MILLION
Labor welcomes word from Tax Commissioner Chris Jordan that bilateral information exchanges signed under the previous Labor Government have added $730 million to multinational tax revenue over the past two years.
Commissioner Jordan will today tell the Tax Institute’s annual conference that information sharing with other countries about the tax affairs of big multinationals netted $480 million in 2012-13. A further $250 million was collected in 2013-14.
Sharing information with authorities in other countries is a crucial step in stopping tax avoidance by big multinationals. In government, Labor signed 28 bilateral information sharing agreements, including with countries like the Cayman Islands and Monaco.
Commissioner Jordan’s comments show that Labor’s work on tackling multinational tax avoidance is paying dividends for Australia. But we are not resting on our past achievements.
We have announced a further package of reforms to ensure companies doing business in Australia pay their fair share.
The independent Parliamentary Budget Office has costed our package, and found it will see big multinationals pay an additional $1.9 billion in tax over the forward estimates.
Joe Hockey has refused to back this package despite a commitment from Labor to support its measures in the Parliament if he includes them in the May Budget.
This week, the Abbott Government has also announced plans to roll back Labor’s tax transparency laws which would reveal how much tax companies earning over $100 million pay. Without transparent tax reporting, it will be easier for some big firms to continue to avoid paying their fair share of tax.
The Abbott Government wants to claim credit for Labor’s achievements on multinational tax, but at every step it is blocking further reform.
It is clear that Labor is the only party in this parliament that really believes big multinationals should pay their fair share.
THURSDAY, 19 MARCH 2015