PSI Affiliates in Australia working in public sector areas (all levels of government , and nationally) have
welcomed a new report, released in Europe overnight, which highlights the need
for governments around the globe to urgently address international corporate
tax system loopholes.

The report, 'Still
Broken: Governments must do more to fix the international corporate tax system',
illustrates how United States corporations have avoided an estimated $US1.45
billion of tax in Australia each year by shifting their profits to low or no
tax countries.
Michael Whaites, Sub-Regional Secretary of Public Services International, said: "The Turnbull Government is doing everything it can to convince us we need a GST increase but as we can see, they allow multinationals to avoid paying billions of dollars in tax, money that is desperately needed by our public services on which communities rely."
ASU Assistant National Secretary, Greg McLean, said: "The unpaid taxes by multinationals could have been spent on maintenance of public services and assets in our communities and for our families - just think what this extra money could do for infrastructure projects!"
"In recent weeks our politicians have been talking about a GST increase going from 10% to 15% and including additional items - all up this could mean more than a 20% increase to families in these taxes. It makes more sense to have multinationals pay their taxes correctly first, before we even talk of increasing the GST as we can't see the full picture of what's needed until our biggest businesses pay their fair share of taxes."
ASU Assistant National Secretary, Greg McLean, said: "The unpaid taxes by multinationals could have been spent on maintenance of public services and assets in our communities and for our families - just think what this extra money could do for infrastructure projects!"
"In recent weeks our politicians have been talking about a GST increase going from 10% to 15% and including additional items - all up this could mean more than a 20% increase to families in these taxes. It makes more sense to have multinationals pay their taxes correctly first, before we even talk of increasing the GST as we can't see the full picture of what's needed until our biggest businesses pay their fair share of taxes."
"Australian families can't and shouldn't pay the shortfall of big
businesses not paying their taxes, whether they be multinationals or home grown
companies," concluded Greg McLean.
Assistant Secretary of the NSWNMA, Judith Kiejda, said it was imperative
the Turnbull Government stumped up and addressed the issue of US multinationals
avoiding tax in Australia. "This report highlights how massive missing tax payments have a
flow-on impact to the delivery of essential public services throughout
Australia," Ms Kiejda said.
"Currently, we've got a huge cloud hanging over the future of our
health funding and the Turnbull Government needs to prioritise clamping down on
multinationals to pay their fair share. Why should Australians pay more for
their health care when these rich companies avoid contributing?" The Abbott Government played host to the G20 last year and indicated
"wherever companies engage in extraordinary activity in order to avoid tax
we will go after them", since then, however, the focus has been on
increasing Australia's domestic Goods and Services Tax (GST).
Michael Tull, Assistant National Secretary of the CPSU, highlighted:
"We need everyone to contribute their fair share towards the essential
services we all rely on. Even a small portion of this $US1.45bn in unpaid tax
could restore the hundreds of science jobs cut from the CSIRO, get more local
stories and local voices on our ABC, reduce waiting times for Centrelink – and
even make sure the Tax Office has the staff to chase the big tax avoiders. It
would give us investment in our future, promote our culture, and provide the
support people need in difficult times".
ETU National Secretary, Allen Hicks, added: "The revenue shortfall
in Australia alone could train more than 15,000 electrical workers, equipping
young people with the skills of the future."
"A shortage of workers to protect our vulnerable children is
matched by the lack of revenue faced by governments around Australia to keep
pace with demand for these and other vital services," said Karen Batt,
Secretary of the CPSU-SPSF. All states now have mandatory child abuse reporting legislation, but
there has been no related resources made available to protect children from
being abused. "If the US$1.45 billion lost through corporate tax avoidance was
spent on services for our community, it could employ an extra 24,000 child
protectors around Australia," Ms Batt said.
Although many developing countries have been the hardest hit by tax
avoidance, the report shows G20 countries are losing the most tax revenue as a
result of profit shifting. Australia is considered the 12th hardest hit.
As G20 nations gather in Turkey this week for the latest round of talks,
Australian public sector trade unions are calling on the G20 to support further
reforms to the global tax system that involve all countries on an equal
footing. These reforms should effectively tackle harmful tax practices such as
profit shifting and the use of corporate tax havens and should halt the race to
the bottom in general corporate tax rates.
'Still
Broken: Governments must do more to fix the international corporate tax system' is
a joint report by the Tax Justice Network, Oxfam, Global Alliance for Tax
Justice and Public Services International based on a research paper conducted
by Alex Cobham and Petr Janský, 'Measuring
misalignment: The location of US multinationals economic activity versus the
location of their profits' (November 2015). The paper illustrates why a
more effective global tax system is needed to provide governments with the
means to fund quality public services.