SCOMO ON MULTINATIONAL TAX: MORE REVLON THAN REVOLUTION
For all Scott Morrison’s rhetoric about tax avoidance, tonight’s multinational tax measures are simply cosmetic.
According to the government’s own budget papers, their revenue gain is ‘unquantifiable’.
Source: Budget Paper No. 2 – Budget Measures p.39
By contrast, Bill Shorten last week announced a comprehensive package to close tax loopholes exploited by multinational companies and improve the budget bottom line by $5.4 billion over the decade.
Labor’s Their Fair Share package includes measures that will:
1. Tighten debt-deduction loopholes used by multinational companies, improving the Budget by $4.6 billion over the decade.
2. Increase compliance activity by the Australian Taxation Office
3. Remove tax advantages and inconsistencies between Multiple Entry Consolidated Groups (consisting of Australian-resident entities that share a common ultimate foreign owner) and Australian-owned ordinary consolidated groups.
4. Deliver more tax transparency by restoring Labor’s $100 million threshold for public reporting of tax data for private companies. This threshold was raised to $200 million in another deal with the Liberals and the Greens political party.
5. Appoint a community sector representative to the Board of Taxation to ensure community sector voices are heard in tax design and review processes.
WEDNESDAY, 10 MAY 2017