Australia’s Assistant Minister for Competition has told a global forum that governments need to maintain pressure on multinationals that avoid tax by using tax havens that charge little or no corporate tax.
Minister says nations lose as much as $US600 billion a year to tax havens
Governments should not stop imposing taxes on big corporations, an Australian government minister said on Wednesday, despite the challenges of collecting tax from multinationals skilled at exploiting loopholes.
Australia’s Assistant Minister for Competition Andrew Leigh says nations should remain focused on multinational tax avoidance despite some calls to abolish corporate tax entirely.
Leigh told an Organisation for Economic Co-operation and Development forum that Australia leans more heavily on corporate tax than many other developed nations and it was essential multinationals paid their share.
“Since company taxes comprise 19 per cent of Australia’s revenue base, to accept the accounting tricks and dodgy behaviour that multinational firms engage in would have a massive impact on Australia,” said Leigh.