During the last sitting of Parliament, the Senate voted to establish an inquiry into corporate tax avoidance and multinational profit shifting. The Senate's Economics Committee has now kicked off work on this; you can make a submission any time until 2 February 2015.
CORPORATE TAX INQUIRY GETS UNDERWAY
The Senate inquiry into corporate tax avoidance has kicked off today by asking 40 ASX-listed companies to explain the taxes they pay.
This week, committee chairman Senator Sam Dastyari has written to a range of major firms which have been alleged to pay as little as 10 cents in the dollar on their local earnings.
They have been asked to explain why their effective tax rate is so far below the 30 per cent company tax rate paid by other Australian firms.
Shadow Assistant Treasurer Andrew Leigh said cracking down on corporate tax avoidance is fundamentally about creating a level playing field for all Australian businesses.
“When big businesses shift their profits offshore, it doesn’t just hit the federal budget’s bottom line,” he said.
“It’s also unfair to local small businesses that are left paying for our public services.”
Senator Dastyari said the inquiry will investigate the strategies big firms are using to minimise their Australian tax bills, and explore how local laws can be strengthened in response.
“We’ll also be taking a good look at how the Coalition’s cuts to the Australian Tax Office are affecting its ability to make companies pay their fair share,” he said.
“The tax office is losing over 4,700 staff, so the inquiry will also focus on how much of a hit revenue collection is taking because of the Coalition’s short-sighted cuts.”
The Senate committee is currently accepting public submissions to the inquiry; submissions will close on 2 February 2015.
WEDNESDAY, 15 OCTOBER 2014
MEDIA CONTACTS: JENNIFER RAYNER 0428 214 856 (LEIGH)
CAMERON SINCLAIR 0407 372 711 (DASTYARI)