Oxfam Australia Chief Executive Dr Helen Szoke said:
“Given the PM’s focus on innovation, the government’s approach to economic management is unexpectedly old-school.
“Here’s an idea that’s ‘outside the box’ – multinational corporate taxation, and tackling tax dodging.
“Despite the Treasurer saying the government is cracking down on multinational tax dodging, the current multinational corporate tax evasion framework he’s signed up to is only a fraction of what’s needed to prevent this practice.
“Current information exchange arrangements exclude most developing countries, so corporations still have the ability to continue to conceal and shift profits generated in these economies.
“The information exchange is also only between tax authorities, and is not public, which isn’t good enough.“
At a time when governments around the world are struggling to raise funds to provide the basic services people need, our government’s focus should be on properly clamping down on corporate tax avoidance, and tax evasion.
“It’s estimated that tax dodging by multinational companies costs the world’s poorest countries at least US $100 billion every year.
“This is money that governments in developing countries could have used towards poverty alleviation, and providing basic services for their communities.
“Should the Treasurer choose to focus on fully tackling multinational tax evasion, we can fund services at home, and help impoverished communities abroad get access to services that we take for granted.”
“The mantra of ‘just stop spending’ is fine when you’re talking about buying an on-trend dress, or the latest technological gadget.
“Fiscal policy doesn’t quite work like that. It’s not a household budget.
“At a time when our government is only giving 25 cents in every $100 of our income towards foreign aid, further cuts would have unimaginable impacts on the most vulnerable peoples on the planet.”
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