Australian retail billionaire Gerry Harvey slammed the country’s
powerful business lobby groups for pushing the interests of
profit-shifting multinational corporations ahead of Australian
companies. Harvey said companies that pay their fair share in taxes have
no voice in government.
The billionaire retailer spoke after it was publicly revealed that
Apple Inc only paid $80 million in tax to Australia despite earning $6
billion in local revenues. Without mentioning a specific company, Harvey
said “a lot of lobbying” has been happening. He added that
multinational companies have many lobbyists in Canberra in an effort to
present their case.
Sydney Morning Herald reports that the Harvey Norman franchise owner
is one of the few business leaders in the country to speak out against
corporate tax avoidance. Harvey said both Australian-owned and foreign
multinational companies are more interested in weakening tax laws so
they avoid paying high taxes. He believes it was unfair for local
companies to pay the right amount of tax while foreign companies don’t.
A spokesman for the Business Council of Australia said there were
certain risks if it acted alone against the practice of shifting
profits. The council recommended taking caution and acting based on
evidence to ensure competitiveness will not be diminished. He said
unless a multinational agreement is in place, Australia can continue to
enforce its tax laws which many believe are some of the “toughest” in
the world.
Michelle DeNiese, executive director of the Corporate Tax
Association, shares the same view with Harvey. She said multinational
companies should be able to pay their own fair share of tax. DeNiese
spoke out against the view that Australia’s corporate tax system is
“fundamentally flawed.”
Despite having 15 retail stores in Ireland and Singapore, Harvey
claimed he has never used them to shift profits. Harvey Norman has paid
higher taxes than Apple in 2014 with $89 million compared to the
Cupertino-based company’s $80 million, according to accounts filed with
the corporate regulator.
Meanwhile, Kate Carnell, chief executive of the Australian Chamber of
Commerce and Industry, told SmartCompany that Harvey’s comments were
disappointing. She said the ACCI has been lobbying for the government to
address issues of large corporations that have the option to pay taxes
wherever they choose.
This news story is reprinted from au.ibtimes.com
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