SENATE TAX INQUIRY GETS UNDERWAY
The Senate Economics Committee is today launching an inquiry into the tax practices of the biggest firms doing business in Australia.
Labor supported this inquiry because we believe Australians deserve to know how much tax big companies are really paying.
We will be using this inquiry to help identify the practices and loopholes that let companies shift profits overseas so that we can work on closing them for good.
Bill Shorten and Labor have already proposed a package of measures to tackle debt deduction arrangements, stop companies double-dipping on tax benefits, and increase resources for the Australian Tax Office.
The Parliamentary Budget Office has confirmed that this package would see multinational corporations pay $1.9 billion more over the next four years.
The Abbott Government has taken the opposite approach, working to roll back transparency laws introduced by Labor that would see the Australian Tax Office publish information about how much tax companies earning over $100 million pay.
Treasurer Joe Hockey’s only idea on multinational profit shifting is a so-called ‘Google tax’. He says he’ll put it in the May Budget despite many independent experts and the Parliamentary Budget Office warning it would breach Australia’s tax treaties.
Since this government lacks the will to address corporate tack avoidance, Labor is taking the lead.
This week’s inquiry is an important step towards getting Australia’s tax settings right so that everyone pays their fair share, including big multinationals.
WEDNESDAY, 8 APRIL 2015
MEDIA CONTACT: JENNIFER RAYNER 0428 214 856