corporate tax avoidance

If the federal government is convinced its proposed corporate tax cuts will bring happiness all around, why is it so worried about those challenging the idea?

Ecuador ramped up its fight against tax dodging on September 21 as the South American country proposed a plan on the sidelines of the UN General Assembly in New York aimed at tackling offshore tax havens with stiffer regulation.

The push comes in the wake of the Panama Papers leaks that exposed just the tip of the proverbial iceberg of global tax evasion and its impact on the global South.

“More tax is not the answer.” This was an actual statement made by Treasurer Scott Morrison on August 24 in response to a proposal from the Western Australian Nationals for a mining tax on Rio Tinto and BHP Billiton.


Jaime Nebot. Photo: ANDES.

Ecuadorian President Rafael Correa singled out opposition politician Jaime Nebot, who has been calling for protests against the government, as a clear example of the progress the country has made with respect to the collection of taxes.

Correa came to power in 2007. He said in 2006, Nebot paid just US$1994 in income taxes, but by last year the opposition leader was paying US$66,593.

At a G20 meeting last October, Rupert Murdoch surprised some with a speech that criticised world leaders for, as it was described in his Australian newspaper, “their policies [that] have caused a ‘massive shift’ in societies to benefit the super-rich with a legacy of social polarisation”.

In particular, Murdoch criticised youth unemployment: “The unemployment rate for Americans under the age of 25 is 13%, which sounds awful until I remember that in the eurozone that number is 23%, and it is twice as high in places like Spain and Greece, and parts of France and Italy.

Subscribe to corporate tax avoidance