AUSTRALIAN FINANCIAL REVIEW Thursday 25 July 2013
Australia is silly to support the G20 on corporate tax. Some years ago Australia bitterly opposed California’s unitary tax, a similar “tax initiative” against international companies. If Google should pay tax to Australia because it trades with Australia, when will China demand that BHP and Rio Tinto should pay tax to Beijing, not to Canberra? Rather than slavishly following the G20, Australia should cut the company tax to 15 per cent. After the offsetting reduction in imputation credits, the net cost could be recovered by a federal land value tax, including on mineral lands. Land values are visible and immobile and can’t be shifted to tax havens.