TACKLING INEQUALITY MEANS CRACKING DOWN ON TAX HAVENS
One of the world’s most reputable not-for-profit groups is urging the Coalition to crack down on tax havens, saying Australia is “falling far behind” on tax transparency.
New research released by Oxfam today estimates that governments around the world are losing $190 billion a year in tax revenue as multinational tax avoiders conceal funds.
An estimated $15 billion is being ripped away from the African continent, home to half of the world’s people living in extreme poverty. While billions of dollars is being hidden from their governments, 40 per cent of the people living in sub-Saharan Africa still don’t have access to clean drinking water.
The rampant use of tax havens around the world is driving inequality, as Oxfam states:
“Tackling tax avoidance means tackling one of the key drivers that is fuelling inequality and poverty in Australia and around the globe.”
Oxfam is calling for the adoption of public country-by-country reporting, a policy that Labor took to the last election.
Adopting Labor’s plan of public reporting of country-by-country reports would be a concrete step towards wiping out the scourge of tax havens. It would allow the public to know where a firm operates, how much revenue they book there, and how much tax they pay – if any.
The Coalition cannot ignore the facts any longer. We know that tax havens are used by drug dealers and arms traffickers. We know they are being abused by multinational firms to avoid paying their fair share of tax.
It is up to Scott Morrison and Josh Frydenberg to take action. As Oxfam states, “it’s time for Australia to become leaders, not laggards” on tax transparency.
Authorised by Noah Carroll ALP Canberra