91自拍论坛 Weekly and ActionAid will be co-sponsoring a Political Economy Society seminar at Sydney University on October 29 to discuss the case for greater international efforts to combat corporate tax avoidance before the G20 summit.
Large corporations systematically avoid paying the statutory level of company tax 鈥 a low 30% in Australia 鈥 by numerous means including siphoning funds to notorious international tax havens.
One of the speakers at the seminar will be Dr Mark Zirnsak from the Tax Justice Network Australia, who helped write a report on corporate tax practices in Australia that revealed 14% of the top 200 companies in Australia pay no tax at all. The report also found 29% have an effective tax rate of 10% or less.
At the launch of this groundbreaking report聽, Zirnsak explained: 鈥淭he frequent use of subsidiaries in secrecy jurisdictions in combination with the shifting of debt and profits is resulting in lost tax revenue in Australia and overseas where it should be paying for essential services to help lift people out of poverty.
鈥淟ast financial year a massive $47 billion flowed from Australia to secrecy jurisdictions.鈥
The Tax Justice Network estimated in 2012 that聽US$21-32聽trillion was hidden in secret accounts in international tax havens.
The G20 leaders summit takes place in Brisbane next month. All the governments in the G20 claim to be in favour of reforming international rules to reduce this systematic tax avoidance and evasion by the corporate rich. But we will see if their efforts to curb corporate tax dodging match their聽extreme efforts to curb protest聽at the G20.
Another speaker at the seminar will be socialist writer John Passant, who is a former Assistant Commissioner of Taxation, and who has expressed strong scepticism about promises of international tax reform. 鈥淭he cooperation of all the countries of the world in combating this, let alone the US, won鈥檛 happen. All the spin about automatic exchange of information is precisely that 鈥 spin,鈥 Passant wrote in a聽聽earlier this year.
鈥淐orporate tax avoidance is systemic,鈥 he said, citing Google's corporate chairperson Eric Schmidt鈥檚 defence of his company鈥檚 tax avoidance activities around the globe, which include funnelling almost $10 billion into Bermuda, saving $2 billion in taxes.
Schmidt boasted: 鈥淚 am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate ... It鈥檚 called capitalism. We are proudly capitalistic. I鈥檓 not confused about this.鈥
The corporate rich certainly aren't confused about their interests and the system that serves them very well. The rest of us, who make up the large majority, should be equally clear about the fact that capitalism does not serve our common interests and now threatens to render this planet uninhabitable. That's the message that聽GLW聽seeks to get out.聽
Unfortunately, confusion is rife on the majority side. But you can help us fight this confusion. Take out a subscription to聽GLW, buy a subscription for a friend, and make a donation today to GLW fighting fund on the toll-free line at聽1800 634 206聽(within Australia).
Donations can be made online. Direct deposits can also be made to Greenleft, Commonwealth Bank, BSB 062-006, Account No. 00901992. Otherwise, you can send a cheque or money order to PO Box 515, Broadway NSW 2007.
We have set ourselves a fighting fund target of $250,000 this year and so far this year our supporters have raised $152,090 leaving just $97,910 to raise by the end of this year. A big thank you to everyone who has made a donation. If you haven't, or can make another donation, please do so soon.
[The free USyd PEA seminar will be held in the New Law School Seminar Room 022, Sydney University on聽Wednesday October 29, 4-7pm.]
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