The Community and Public Sector Union (CPSU) has renewed its criticism of Government Agencies entering large contracts with companies who do not pay their full share of tax.
The CPSU said this gave a free pass to companies reaping hundreds of millions of dollars through Commonwealth contracts.
Assistant National Secretary of the CPSU, Michael Tull (pictured) said the Government first announced a commitment to establish a registry of corporate beneficiaries in early 2016, and Assistant Treasurer, Stuart Robert reaffirmed it.
“A CPSU commissioned report last year examined the aggressive tax minimisation strategies used by multinational companies holding Australian Taxation Office contracts, recommending full disclosure of beneficiaries as one of six steps to make corporations pay their fair share of tax,” Mr Tull said.
“Making multinational corporations pay their fair share of tax would mean more money for essential public services and permanent, quality public sector jobs.”
He said companies should not be let off the hook when it came to paying tax, “but the stakes are even higher when we’re talking about multinational corporations that the Government itself is throwing money at through lucrative Commonwealth contracts”.
Author of the CPSU’s report, Accountability and Research analyst Jason Ward said complex ownership structures and a lack of transparency were key features of tax minimisation.
“Public registers of beneficial ownership have been set up in several jurisdictions and are now part of emerging global standards,” Mr Ward said.
“Making public who owns a company is a simple but effective way to discourage profit shifting and other tax minimisation schemes,” he said.
“Setting up a registry would be a cheap, simple and effective first step towards making companies pay their fair share of tax.”
