Commenting in response to the Diverted Profits Tax legislation passed by Federal Parliament last night, Oxfam Australia spokeswoman Joy Kyriacou said:
“The passing of the new Diverted Profits Tax (DPT) overnight is a welcome sign of clear action from the Government to crack down on multinational tax avoidance.
“Oxfam estimates that each year, ‘offshoring’ of profits by Australian-based multinationals costs the tax-payer between $5 and $6 billion (AUD).
“Tax avoidance and profit-shifting is a global problem.
“This change will go some way to helping address the issue in Australia, but there is still much more to be done if the Government wants to crack down on this practice globally.
“Developing countries miss out on an estimated $3 billion (AUD) of tax revenue each year because of the tax dodging practices of multinationals based in Australia.
“The DPT is a good step, but to crack down on this issue globally the Government must go further.
“Oxfam is calling on the Government to follow other leading nations in cracking down on profit-shifting globally, by introducing public country-by-country reporting of tax affairs for all big businesses.
“Australian Taxation Office data shows more than one in three big companies are paying no tax.
“Big companies operating from Australia should be required to be transparent and publicly report on their profits, taxes and assets for every country in which they operate, so it’s harder for them to shift profits and dodge paying their fair share.
“This would be good for Australia, as well as helping to stop large companies from ripping profits and taxes out of some of the poorest countries in the world.”
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