The Coalition intends to try and block new legislation that will make public the amount of tax paid in Australia by large multinational companies.
Passage of the tax transparency measures through the Parliament will finally give the Australian public visibility of the tax paid by some of the largest and most profitable companies in the world.
These amendments ensure:
- the Commissioner of Taxation will be required to publish the tax payable of corporate taxpayers with accounting incomes of $100 million or more a year, and the resource rent tax liabilities of entities subject to the MRRT or PRRT.
- the publication of aggregate collections for each Commonwealth tax; and
- enhanced information sharing between Government agencies.
However, the Coalition seem intent on voting to keep the public in the dark about how much tax multinationals are paying in Australia.
Over the last 12 months, the Coalition has voted multiple times against Government measures that close corporate tax loopholes and protect more than $10 billion of revenue. The Coalition have also yet to commit to supporting any of the measures announced in the Budget that crack down on profit shifting and tax avoidance.
The Gillard Government is committed to ensuring that large multinational companies pay their fair share of tax so that small businesses aren't at a disadvantage.
The reality is the Coalition has no interest in closing any of the tax loopholes being exploited by multinational companies:
"We don't like these changes and if we had a choice we would not accept them"
[MINES AND METALS CONFERENCE – 17 MAY 2013]
The Opposition needs to declare whether they will supports the Government's crackdown on multinational tax loopholes. Even industry and taxpayer groups are calling for the Opposition to get behind these reforms:
"Business does want certainty and at this stage of the election cycle that includes knowing what the alternative government would do on these measures"
[ROBERT JEREMENKO, TAX INSTITUTE – AFR, 21 MAY 2013]
It speaks volumes about the Opposition that they're happy to support multinational companies to exploit tax loopholes while at the same time:
- ripping away tax incentives for small business;
- jacking up the company tax rate on businesses that pay a fair share; and
- floating an increase the GST, which would hurt hardworking families and hurt small businesses struggling to compete against GST-free imports.
Improving the transparency around the tax payable by large corporate entities will help to inform the debate and discourage aggressive tax minimisation practices. The Coalition are simply not interested in shining a light on these practices and cracking down on multinational companies shifting profits out of Australia.