Oxfam Australia has welcomed today’s passing of world-leading legislation on Public Country by Country Reporting of multi-national corporate tax and profit information as a significant step forward for tax transparency.
This legislation will enable policy makers, civil society, journalists and academics to gain transparency over how multinational corporations are shifting profits to tax haven countries to avoid paying tax, driving corporations to stop tax avoidance or risk intense public scrutiny.
In Australia, it was estimated that $11 billion in revenue was lost in 2020 due to multinational corporate profit shifting to avoid paying tax. This lost revenue should be funding much needed public services such as health and education, raising the rate of income support, and increasing the Australian aid budget.
Oxfam Australia Chief Executive Officer Lyn Morgain highlights that in an increasingly unequal world, tax transparency is a vital ingredient for a better future for all.
"This legislation is world leading reform on tax transparency, which could rightfully help to deliver billions of tax revenue to the Australian community from corporations making super profits and trying to avoid paying their fair share,” said Ms Morgain.
"Big corporations will do whatever they can to boost their profits, including shifting profits they earn in Australia to low tax countries. This amoral behaviour is allowing corporations to make billions in profits, while short-changing the Australian community and low-income countries that desperately need the tax revenue for basic services. Casting a light on this poor business-as-usual behaviour is a very important step to stopping it.
“It’s not just Australia that will benefit. Many multinational corporations that operate in Australia also operate in many other countries across the world. Australia's transparency will have ripple effects that benefit low-income countries who desperately need the tax revenue for basic services.
For interviews, please contact Lucy Brown at lucyb@oxfam.org.au or 0478 190 099.
Notes to Editor
Recent analysis from the EU Tax Observatory has estimated that multinational corporations shifted US$1 trillion into tax havens in 2022. This is an estimated loss of 10% of corporate tax revenue globally.
The legislation was part of the package of reforms negotiated between Labor and Greens on the last sitting day of 2024.