In this new brief just published by the Sheffield Political Economics Research Institute authors John Mikler and Ainsley Elbra address the issue of global corporate tax avoidance and consider how multinational corporations can be made to pay their fair share of tax.
Taken as a whole, the tax plans just announced by US President Donald Trump, which include abolition of the inheritance tax, could represent the largest tax cut for billionaires and millionaires in US history. According to the President, this will stimulate growth and job creation. There’s no evidence to support this; in fact the evidence suggests the exact opposite.
Is it fair that Australians pay more tax on one beer than the oil and gas industry pays in petroleum tax on offshore gas in a year? Might a 10% royalty guaranteeing annual revenue of between $1.3 billion and $2.8 billion be a better way to go? These are the issues rightly raised by a report just out by the McKell Institute called ‘Harnessing the Boom.’ It was written by Richard Holden, a Professor of Economics at UNSW Business School. There are some great resources on a campaign site over this issue here. One of our colleagues at Tax Justice Network Australia Jason Ward takes up the story for us here:
The Tax Justice Network Australia (TJN-Aus) has had major wins in getting the Australian government to tackle corporate tax dodging. Currently TJN-Aus is running a campaign to push the government to reform the primary tax on oil and gas production, the Petroleum Rent Resource Tax (PRRT).
The current boom in exports of liquified natural gas (LNG) will catapult Australia over Qatar as the world’s largest exporter. However, on the same volume in 2019/20 Qatar will generate over $26 billion in royalties will Australia will earn nothing in PRRT from LNG. Qatar will also earn significantly more revenue from dividends from state-owned companies and corporate income tax payments.
New figures published today by the Tax Justice Network provide a country-level breakdown of the estimated tax losses to profit shifting by multinational companies. Applying a methodology developed by researchers at the International Monetary Fund to an improved dataset, the results indicate global losses of around $500 billion a year. The figures appear in a study published today by the United Nations University World Institute for Development Economics Research (UNU-WIDER, in Helsinki).
Coming out of the economic crisis Ireland was one of the best performing economies, with GDP growth rates of 8.5% in 2014 and an extraordinary 26.3% in 2015. But how much of this economic activity was real, and how much a fiction created by Ireland’s tax haven status? A new paper by Heike Joebges of the University of Applied Science in Berlin considers the evidence.