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Australia should blacklist tax havens, Oxfam says Australia should blacklist tax havens, Oxfam says
(about 2 hours later)
Australia should create a global blacklist of of tax havens, and impose sanctions on those who exploit them, Oxfam has said in the wake of the global publication of the Paradise Papers.Australia should create a global blacklist of of tax havens, and impose sanctions on those who exploit them, Oxfam has said in the wake of the global publication of the Paradise Papers.
“Scandals involving the super-rich robbing the world’s poorest of much-needed tax revenues, like those revealed in the Paradise Papers leak, can be avoided if the Australian Government and others take … immediate steps towards tax reform,” Oxfam Australia said in a statement.“Scandals involving the super-rich robbing the world’s poorest of much-needed tax revenues, like those revealed in the Paradise Papers leak, can be avoided if the Australian Government and others take … immediate steps towards tax reform,” Oxfam Australia said in a statement.
Obtained by the German newspaper Süddeutsche Zeitung, and shared with the International Consortium of Investigative Journalists, the Guardian and more than 90 media partners across the globe, the Paradise Papers reveal the offshore financial affairs of some of the world’s biggest multinational companies and richest individuals, and set out the myriad ways in which tax can be avoided using artificial structures.Obtained by the German newspaper Süddeutsche Zeitung, and shared with the International Consortium of Investigative Journalists, the Guardian and more than 90 media partners across the globe, the Paradise Papers reveal the offshore financial affairs of some of the world’s biggest multinational companies and richest individuals, and set out the myriad ways in which tax can be avoided using artificial structures.
They showed that: millions of pounds from the Queen’s private estate has been invested in a Cayman Islands fund – and some of her money went to a retailer accused of exploiting poor families; US commerce secretary Wilbur Ross had shared business interests with Russian President Vladimir Putin’s son-in-law; Formula One champion Lewis Hamilton avoided taxes on a £17m jet using an Isle of Man scheme; and that multinational miners, including some operating in Australia, engaged in multi-billion dollar cross-currency interest rate swaps with offshore entities in tax havens. Oxfam Australia chief executive Dr Helen Szoke said tax avoidance by multinationals in Australia was costing Australia and developing countries billions of dollars, fuelling a global inequity crisis.
Oxfam Australia chief executive Dr Helen Szoke said tax-avoidance by multinationals in Australia was costing Australia and developing countries billions of dollars, fuelling a global inequity crisis.
“Australian-based multinationals are part of the problem, contributing to keeping the world’s poorest out of pocket as governments balance the budget by raising taxes on people and cutting vital public services,” she said.“Australian-based multinationals are part of the problem, contributing to keeping the world’s poorest out of pocket as governments balance the budget by raising taxes on people and cutting vital public services,” she said.
Oxfam Australia said international tax reforms had failed. Assistant professor of economics at University of California, Berkeley, Gabriel Zucman, estimates multinationals artificially shift 45% of profits to low- and no-tax havens.Oxfam Australia said international tax reforms had failed. Assistant professor of economics at University of California, Berkeley, Gabriel Zucman, estimates multinationals artificially shift 45% of profits to low- and no-tax havens.
The Australian Tax Office released data last month that estimated multinationals avoided $2.5b in taxes in 2014-15. The Australian Tax Office released data last month that estimated multinationals avoided $2.5bn in taxes in 2014-15.
The ATO’s figures show that large corporate groups reported $1.5tn in gross income in that year, and paid about $41bn in tax. The ATO estimates the tax gap – between what is paid and what should be paid if all companies were fully compliant – was $2.5bn in 2014-15 ,or 5.8% of tax payable.
The ATO has been working for several months with partner agencies across the world in anticipation of the release of the Paradise Papers by the ICIJ.
“We’re hoping quite soon to get access to that data ourselves and begin analysing the Australian implications of that data set,” Mark Konza, the tax office’s deputy commissioner, said.
Governments across the world should act to stop the world’s richest hiding their wealth and avoiding tax, Oxfam said, including by:Governments across the world should act to stop the world’s richest hiding their wealth and avoiding tax, Oxfam said, including by:
establishing a global blacklist of tax havens based on comprehensive, objective criteria and implementing counter-measures, including sanctions, to limit their useestablishing a global blacklist of tax havens based on comprehensive, objective criteria and implementing counter-measures, including sanctions, to limit their use
ensuring all multinational companies make financial reports publicly available for every country where they operate; and make extractives companies also report on a project by project basisensuring all multinational companies make financial reports publicly available for every country where they operate; and make extractives companies also report on a project by project basis
establishing a centralised public register of individuals who own or benefit from shell companies, trusts and foundationsestablishing a centralised public register of individuals who own or benefit from shell companies, trusts and foundations
ensure tax treaties do not exploit developing countries’ tax bases ensuring tax treaties do not exploit developing countries’ tax bases
create a global tax body where all countries can work together on fundamental tax reforms creating a global tax body where all countries can work together on fundamental tax reforms.
The Australian Tax Office released data last month that estimated multinationals avoided $2.5bn in taxes in 2014-15.
The ATO’s figures show that large corporate groups reported $1.5tn in gross income in that year, and paid about $41bn in tax. The ATO estimates the tax gap – between what is paid and what should be paid if all companies were fully compliant – was $2.5bn in 2014-15 ,or 5.8% of tax payable.
The ATO has been working for several months with partner agencies across the world in anticipation of the release of the Paradise Papers by the ICIJ.
“We’re hoping quite soon to get access to that data ourselves and begin analysing the Australian implications of that data set,” Mark Konza, the tax office’s deputy commissioner, said.