Evidence mounts for crackdown on multinational companies

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Medical device companies receiving more in government subsidies than they pay in tax strengthens the case for the government’s planned crackdown on multinational companies. | EDITORIAL theage 's view

according to private health insurers, further strengthens the case for the government’s planned crackdown on multinational companies.

Labor went to the election promising to overhaul the multinational tax system and raise an extra $1.9 billion in the process. Given the growing budget debt and deficit, more revenue is clearly needed and targeting companies that are not paying their fair share of tax is a good way to get it. The OECD says globalisation has promoted unhealthy tax competition between countries, and digitalisation of the economy has made it too easy for multinational companies to move their profits to countries with lower tax rates.

Beyond implementing the OECD solution, the government hopes to get more tax by improving transparency around how much tax companies pay, to put pressure on those companies to be socially responsible and pay their share.

 

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