28 March 2021
‘Greater scrutiny of historical tax behaviour of tech giants should be considered by governments when awarding IT contracts, according to corporate tax experts who argue giving the work to local firms would deliver better delivery outcomes and a more sustainable tax system.
In a submission to the Senate Committee inquiry into the current capability of the Australian Public Service, the Centre for International Corporate Tax Accountability and Research (CICTAR) lashed the ongoing practice of handing the bulk of large-scale IT contracts to multinational tech giants like Amazon, IBM, SAP and Oracle.
The tech giants continue to receive contracts despite commitments from the government to support local IT companies through federal contracts and the recognised need to build long term capability within the APS, according to the trade union-funded CICTAR.
‘Multinational tax dodging tech giants still dominate federal IT contracts and Australian companies do not seem to be given the same opportunities,’ the submission said.
According to the submission, 28 companies were awarded $4.4 billion in federal contacts for IT services in 2020, but only four of them were Australian. Many of the contracts were handed to multinational technology companies that ‘extensively used tax haven subsidiaries in global corporate structures’…”