CICTAR welcomes Australia’s landmark legislation on corporate tax transparency
Australia’s implementation of public country-by-country reporting is a ground-breaking move in the fight to end multinational tax dodging
CICTAR warmly welcomes the practical and common-sense action by the Australian government, announced today, to introduce greater tax transparency for any significant global entity operating in Australia. The introduction of public country-by-country reporting (CbCR) will mark a world first in corporate transparency. While the legislation announced will apply in Australia, the impacts will be global and ground-breaking.
This landmark moment reflects the hard work of CICTAR and other members of the Tax Justice Network – Australia and our local and global union and tax justice allies, with whom we have campaigned to achieve this outcome.
Public CbCR will require large multinationals, operating in Australia, to report key information about basic finances; including: earnings, profits, losses, number of staff and taxes paid (or not) for every country where they operate across the globe. This means that everyone, everywhere, will have access to the same information on how multinationals arrange tax affairs, including governments in the Global South, shareholders, journalists, workers and campaigners. It marks the beginning of the end for the corporate secrecy which obscures massive tax dodging by multinationals.
The legislation follows the reporting requirements in the Global Reporting Initiative (GRI) Tax Standard, which CICTAR was instrumental in supporting and promoting and which will ensure that the information revealed is complete, meaningful and standardised. GRI reporting on other topics is already used by a majority of large corporations and supported by global investors and other stakeholders.
Jason Ward, Principal Analyst, CICTAR (Centre for International Corporate Tax Accountability & Research), said:
The Australian government is showing global leadership by introducing public country-by-country reporting for multinationals. This move will increase transparency and accountability and shine a bright light on where and how multinationals shift profits to avoid the obligation to help fund essential public services and infrastructure around the world. Exposure of current practices will encourage an end to abusive tax schemes everywhere. We are confident that the government has the votes to easily pass this landmark legislation, for implementation beginning 1 July, which will begin to level the playing field for all businesses that already pay a fair share and contribute to the communities where profits are generated.
CICTAR has worked with allies in Australia, and across the world, to expose how global corporations shift profits to avoid tax obligations where income is genuinely earned. Our work has helped to shift the narrative on tax in Australia and our engagement with the Australian Labor Party (ALP) in opposition and contributions to government consultations since the election have encouraged and shaped this legislation.
