Media release: Canada must support UN tax body following OECD interference in Australian tax law
For immediate release: July 10, 2023
OTTAWA— The Canadian government should be deeply alarmed by news that the OECD lobbied the Australian government to weaken legislation that would have required multinationals to show where they pay tax – a powerful tool to deter corporate tax avoidance.
“What on earth is the OECD doing interfering in the governance of a country – let alone lobbying on behalf of business interests,” said Katrina Miller, executive director of Canadians for Tax Fairness. “This completely undermines the OECD’s credibility on BEPS and international coordination.”
Canada has delayed strengthening domestic tax rules while awaiting consensus from the OECD’s Inclusive Framework. The OECD’s long-delayed process has not included many of the countries that are most affected by multinational corporations, especially developing nations in the Global South.
Meanwhile, governments continue to lose revenue as multinational corporations shift as much as $1 trillion in profits annually.
“It is extremely inappropriate for the OECD –the same body that is in charge of rewriting global tax rules-- to weaken Australia’s efforts to tackle corporate tax dodging,” said DT Cochrane, economist and researcher with Canadians for Tax Fairness.
Canada has thus far not supported a UN-led body for international tax reform, instead expressing support for the OECD process. This latest news is proof that countries can no longer rely on a body of rich nations to rebuild a fair tax global system.
“This should motivate Canada and other countries to support a more democratic process of fixing the global tax system through the UN,” Miller said.
Canada has thus far not supported a UN-led body for international tax reform, instead expressing support for the OECD process. This latest news is proof that countries can no longer rely on a body of rich nations to rebuild a fair tax global system.
Media contact:
Erika Beauchesne
Communications Coordinator
Canadians for Tax Fairness
erika.beauchesne@taxfairness.ca
613-315-8679
