Treasurer David Bradbury: “It is not my usual practice to mention companies by name or to publicly canvass the tax position of particular taxpayers. Nor is it my normal practice to publicly discuss strategies employed to minimise corporate tax. However, I will be departing from my usual practice today as I believe there is a strong public interest in drawing attention to practices that have the potential to undermine the future sustainability of Australia’s corporate tax base”.
Treasurer David Bradbury said that increasingly, governments were discovering the lack of effectiveness in the digital age of international tax concepts created for the industrial age. “This has been highlighted by the compelling evidence revealed by the UK Public Accounts Committee examination of the Taxation of Multinational Corporations”.
“Cranking up the scrutiny on big companies is a vote winner, particularly when it is aimed at companies that pay minimal tax or whinge about the tax they are paying, such as multinationals engaging in elaborate transfer pricing rackets”.
“Treasurer David Bradbury cited media reports that Amazon paid no tax in the UK yet made more than £3 billion in sales. It did this through an elaborate “routing” of transactions through Luxembourg, where it faced an effective tax rate of 2.5 per cent”.
“It is a complex web but governments in need of revenue will pull out all stops to get back what rightfully belongs to the country”.
Treasurer David Bradbury: “Many in business reject the notion that paying a fair share of tax forms part of a broader social compact, instead believing that it is just another cost of doing business. On this point, I vehemently disagree”.