The Business Council claims moves to ensure global companies pay at least 15% tax justify a cut in company taxes. If only they actually paid that much…
The G7’s proposed new corporate tax minimum rate of 15% represents no major threat to either tax havens like Ireland or the Caymans, or to tech giants who are among the world’s worst tax dodgers — Alan Kohler rightly calls the deal “a bit sad”. Nor will it generate significant additional revenue for Australia. But Australian business has been quick to argue that it means Australia must reduce its company tax rate.
Straight out of the blocks was Jennifer Westacott of the Business Council (BCA), complaining “at double our 30% rate, a global minimum of 15% leaves Australia severely exposed in its ability to attract global capital.” She added that if the government wouldn’t cut company tax rates, it could at least have the decency to give business “a workplace relations system that creates jobs”, as opposed, presumably, to the current one which hasn’t generated any employment since the pandemic.
You can understand Westacott’s watertight logic — an agreement recognising that multinational firms pay too little tax and should be paying more leads inexorably to the conclusion that the Business Council’s multinational corporate members should pay less tax.
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