The tax dodging of multinational companies costs less-developed countries over 100,000,000,000 dollars every year.
Less- developed countries lose more money each year due to the tax dodging by multinational companies than the total amount of international 'aid' given. This at a time when the global crisis is prompting severe cuts in states’ budgets around the world and millions of children are denied a basic education.
Governments have a duty of care to provide education, healthcare, water, sanitation and other basic social services to its citizens. Taxation is a primary means of generating essential revenue. For this reason the tax payments foreign corporations make to host governments are of paramount importance.
Without the capacity to generate domestic revenue, less-developed countries will continue to be dependent on foreign loans and investment, whilst foreign companies profit from extracting the countries' natural resources.
G20 countries, including Australia, must act now to challenge this injustice by agreeing on measures to stop tax haven secrecy. Tax havens allows companies to hide their profit and avoid paying taxes in less-developed countries.
These measures include requiring companies to report on the profits made and taxes paid in every country in which they operate and automatic exchange of information between different tax jurisdictions. This would help developing countries collect the taxes they are owed.
Speak up in support of change to secrecy that harms millions, if not billions, of lives in less-developed countries. History shows that significant changes like this have only been made when mass public pressure is placed on wealthy countries to take such steps.