The consensus was similar for all companies involved: they weren’t avoiding tax, but were operating and structured in a way to maintain competitiveness in the market.
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“[Naming and shaming] does two things: it allows consumer and voters to demand action from the government and, secondly, these companies do care about their reputations and they do care about their market share. It’s not illegal but it’s completely immoral”.
He says the documents revealed $31 billion made in Australia in one year was shuffled through Singapore by 10 major companies.
The first report of the Senate inquiry into corporate tax avoidance was due to be tabled on Monday but “livid” members of the government have delayed its release until Tuesday amid a furore over the apparent leaking of the report over the weekend.
“The worst tax offenders should be named and shamed, they should have to justify publicly why they’re taking the stances that they’re taking”, the inquiry’s chairman Sam Dastyari told reporters in Sydney. He said corporates were essentially selling products to themselves, through companies set up in Singapore, to keep their profits down.
Dastyari said taxpayers would be the beneficiaries of greater transparency.
On ABC radio, Treasurer Joe Hockey – who previously likened tax-evading companies to thieves – said the government will go after 30 primarily offshore-based companies that are not paying their fair share of tax, promising to put legislation to parliament next month.
Labor’s Senator Sam Dastyari said Uber’s company records suggested it did not pay income tax in Australia.
“This is a very serious issue that goes to the integrity of the entire Senate”, he said.
Hockey accused the senator of trivialising the issue by playing political games.
However the senator denied speaking specifically about the unreleased report’s recommendations, insisting what he said were his personal views.
“Any information which could identify individual companies has been blocked out”, he told the Seven Network’s Sunday Night program.
“The more public exposure, the more pressure that’s brought upon these companies, the better the policy outcome”.
It was a sentiment echoed by Independent South Australian senator Nick Xenophon, who was also on the committee.
The government has hit back at claims it has been flat-footed on the issue of tax dodging as a Senate committee pushes for the introduction of new transparency measures, including a “name and shame” register for companies that are forced to settle tax avoidance cases with the Australian Tax Office.
“The Australian Tax Office is going after these companies”.
“If you don’t get the settings right now for these companies, we have the potential to lose tens of millions of dollars in the future”, he said.
One of the report’s 18 recommendations will suggest that even companies with overseas headquarters should disclose their revenue, tax paid and deductions used in Australia, the Herald said.
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The Senate inquiry into multinational tax avoidance will table an interim report today detailing some of its findings after holding five public hearings and receiving more than 100 submissions from some of the world’s largest companies including Apple, Microsoft, BHP, Rio Tinto and Google.
