Tax havens hurt equality, especially in developing countries. Globally, two out of every five dollars of multinational profits are estimated to be channelled through tax havens. For regional neighbours such as the Philippines and the Solomon Islands, the amount shifted into tax havens is over 2 percent of GDP.
Tax avoidance takes away precious funds that could be used for vital services.
Labor will provide $5 million a year to Tax Inspectors Without Borders, with a portion of that funding assisting the Australian Tax Office to send tax experts to developing countries who request our help.
It is estimated that for every $1 spent by donor countries on the program, developing nations have recouped $100 in additional tax revenue.
With a 100:1 rate of return, Labor’s $5 million investment per year would recoup $500 million in revenue to help developing nations fund schools and hospitals.
This is part of Labor’s commitment to rebuilding our Overseas Development Assistance program, and the latest step forward on tackling multinational tax avoidance.
We will pay for it by making multinationals pay their fair share and closing tax loopholes used by the top end of town.