Leak feeds Labor, coalition tax debate

Labor and the coalition are at odds over multinational tax avoidance amid a massive leak of information about the affairs of the wealthy.

Labor says the federal government must crack down on tax avoidance by multinationals and the super rich if it wants to properly fund schools and hospitals.

The renewed call comes as more than 800 wealthy Australians are being investigated by the Australian Taxation Office over their dealings with a secretive Panama-based law firm used by the rich to hide money.

The ATO identified the individuals before the leaking of 11.5 million Mossack Fonseca documents detailing the offshore holdings of high net-worth people around the world.

Opposition Leader Bill Shorten says multinationals and the wealthy must pay their fair share of tax.

"At the same time as parents are sending kids to school, paying their taxes and expecting Mr Turnbull to pay some back in the form of school education, we see some large companies gaming the system," he told reporters in Perth on Monday.

Treasurer Scott Morrison said the government was cracking down on multinationals, reaping $400 million in revenue in recent years from acting on sources and information received by the ATO.

The government has agreements with more than 100 countries to swap information, while laws to strengthen the system passed parliament in December without Labor's support.

"Our record when it comes to tax avoidance and particularly multinational tax avoidance is one of legislation and action," Mr Morrison told ABC radio on Monday.

"The Labor Party voted against laws to crack down on multinationals - explain that to me."

The laws require multinationals with a turnover of $1 billion or more to provide detailed accounts of their tax arrangements while private companies with a turnover of $200 million are required to provide detailed public accounts.

Labor says two-thirds of the companies that would have been covered under its proposal were not covered under the deal between the coalition and Greens.

Prime Minister Malcolm Turnbull last week flagged the possibility of the government withdrawing from the funding of state schools, while retaining responsibility for the non-government sector.

Mr Shorten said this, and revelations of leadership ambitions by a senior Liberal minister, showed the government was not focused on the needs of everyday Australians.

Former cabinet minister Kevin Andrews suggested in a suburban newspaper interview he could contest the leadership.

"It has never been my burning ambition to be the leader of the party, but if circumstances arose ... where I thought there should be a change or a contest, I am prepared to do it," Mr Andrews told the Manningham Leader.

Mr Shorten said there was "division at the heart of the Turnbull government".


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Source: AAP



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