Australia

3611 readers

134 users here now

A place to discuss Australia and important Australian issues.

Before you post:

If you're posting anything related to:

The Environment, post it to Aussie Environment
Politics, post it to Australian Politics
World News/Events, post it to World News
A question to Australians (from outside) post it to Ask an Australian

If you're posting Australian News (not opinion or discussion pieces) post it to Australian News

Rules

This community is run under the rules of aussie.zone. In addition to those rules:

When posting news articles use the source headline and place your commentary in a separate comment

Banner Photo

Congratulations to @[email protected] who had the most upvoted submission to our banner photo competition

Recommended and Related Communities

Be sure to check out and subscribe to our related communities on aussie.zone:

Plus other communities for sport and major cities.

https://aussie.zone/communities

Moderation

Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.

Additionally, we have our instance admins: @[email protected] and @[email protected]

founded 1 year ago

MODERATORS

[email protected]

Corporate tax avoidance costs trillions a year. But Australia's plan to end it could create new problems (www.abc.net.au)

submitted 1 year ago by [email protected] to c/[email protected]

3 comments fedilink hide all child comments

Next year, Australia will introduce a global minimum tax aimed at preventing multinationals based within its borders from evading tax.

It's been dubbed the "race to the bottom".

However, Singapore's effective tax rate can be much lower, as its government has incentives that greatly reduce or remove tax obligations for multinationals that set up operations and services in that country.

Last year, the ATO reached a settlement of almost $1 billion with mining giant Rio Tinto over its Singapore-based subsidiary.

Professor Sadiq says the tax will "raise very little" for Australia, providing $210 million by the 2024 financial year, "less than half a per cent of the $93 billion in company tax revenue" expected for that year.

Professor Sadiq says it would be better to distribute corporate tax revenue to countries with a company's activities actually take place.

(I welcome any recommendations for a better summary website to use.)

top 3 comments

sorted by: hot top controversial new old

[–] [email protected] 19 points 1 year ago

Make the rich pay their share. Figure out the new problems as they arise.

[–] [email protected] 8 points 1 year ago (1 children)

This is the best summary I could come up with:

Australia was one of the 130 OECD countries and jurisdictions that pledged in 2021 to introduce a 15 per cent global minimum tax, which it intends to implement from January 2024.

The idea of a global minimum tax has been promoted by renowned economist Joseph Stiglitz as well as political leaders in Australia and abroad.

"What we don't want to see is an economy where multinational companies are looking for a shortcut to success by finding another tax loophole," Andrew Leigh, the assistant minister for competition, charities and treasury, wrote in the Australian Financial Review last year.

In 2016, reportedly half of US corporate profits were stashed in seven countries with low tax rates: Bermuda, the Cayman Islands, Ireland, Luxembourg, the Netherlands, Singapore and Switzerland.

In 2021, the International Monetary Fund reported that multinationals mining in Africa could be shifting potentially more than $1 billion worth of corporate tax revenue out of the continent every year.

I'm a bot and I'm open source!

[–] [email protected] 1 points 1 year ago

Good bot