Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Tax announcement ‘only a baby step’

Recent global agreements between 31 countries to confidentially share tax information have been blasted by Oxfam Australia as “only a baby step towards greater tax transparency”.

Tax&Compliance Mitchell Turner 01 February 2016
— 1 minute read

Joy Kyriacou, Oxfam Australia’s finance for development manager, stated that much more needed to be done in order to create a more just tax system and that confidentially disclosing the tax information on multinational companies served as an inadequate measure of reform.

Advertisement
Advertisement

“This needs to start with making the information public,” Ms Kyriacou said.

The latest agreement “falls short” of including poorer countries and their respective economies, she said.

“Only one of the 31 signatories to join this agreement is classed as a lower-middle-income nation, and none are among the world’s poorest.”

“We need changes to the global tax system that ensure everyone benefits – including people in the poorest countries,” she added.

Ms Kyriacou went so far as to deem “financial secrecy” at the heart of “the vastly unequal world in which we live today”, noting that many companies will avoid the changes altogether since they do not meet the global revenue requirements of $1 billion.

“European banks are already providing financial information on a country-by-country basis, so there’s no reason why the same cannot be added to this agreement. It is time for tax information, on a country-by-country basis, to be made public,” she said.

Tax announcement ‘only a baby step’
image intro
accountantsdaily logo

 

Are you thinking of expanding your offering into SMSFs to grow your client base? Become a pro at SMSF fundamentals and make your clients bulletproof with the SMSF Foundations course. Learn directly from Aaron Dunn from Smarter SMSF as he deep-dives into the fundamentals you need to know to successfully undertake your work as an SMSF practitioner. Earn up to 21 CPD hours! Learn more

Tax&Compliance