Australia Makes Significant Progress in Tax Transparency: Treasury Appeals CTA Injunction
Australia recently made significant progress in tax transparency by passing legislation requiring major U.S. multinationals to report on their tax practices on a country-by-country basis. This is a big win after nearly two years of debate and revisions, and advocacy groups like FACT, CICTAR, Tax Justice Network, Oxfam Australia, and ITEP are celebrating the new law.
This move in Australia could set a new global standard for transparency, with FACT’s policy director emphasizing the importance of having all major multinationals play by the same rules. The hope is that this will level the playing field for investors, policymakers, governments, and taxpayers worldwide.
In a similar vein, FACT had previously filed a petition with the U.S. Securities and Exchange Commission on behalf of investors with trillions of dollars in assets, calling for similar reporting requirements for U.S.-listed companies.
Australia’s new law doesn’t cover every jurisdiction where multinationals operate, but it’s a significant step forward compared to other reporting regimes. Large multinationals will have to disclose tax and operational data for jurisdictions like Bermuda, Hong Kong, Singapore, and Switzerland, which are notorious tax havens with no previous reporting requirements.
On the other side of the globe, the Treasury Department has appealed against a Texas judge’s nationwide injunction on the Corporate Transparency Act, a groundbreaking anti-money laundering law passed with bipartisan support. Despite the injunction, FACT’s executive director sees the law as crucial in preventing criminal activities like money laundering through anonymous shell companies.
The CTA requires legal entities to provide identifying information about their true owners, a move aimed to curb illicit financial activities in the U.S. economy. This law marks a significant improvement in the fight against financial crimes, decades after anonymous shell companies have enabled criminals to launder proceeds from corruption, trafficking, and more.
These recent developments in tax transparency and anti-money laundering efforts have drawn attention from various news outlets, highlighting the importance and potential impact of these regulatory changes. This push for transparency is not just about dollars and cents; it’s about creating a fair and just financial system that benefits everyone.
