Let tax laws do their job: Mark Leibler
The nation’s most powerful and respected tax adviser has warned the Abbott government not to make a legislative “kneejerk” response to the current debate over multinationals shifting profits to avoid tax.
Arnold Bloch Leibler senior partner Mark Leibler said today the current tough anti-avoidance provisions of the tax law should be allowed to do their job.
“Political grandstanding in the Senate and some over-the-top newspaper headlines and hype in relation to multinationals and the wealthy rorting the tax system add nothing constructive to the tax debate and if acted upon may well produce legislative knee-jerk reactions which could lead to a depletion rather than a boost to our revenue base,” he said.
Mr Leibler was speaking at an Australia Israel Chamber of Commerce lunch addressed by federal Treasurer Joe Hockey.
“I would urge the government to give the tax commissioner time to proceed with audits of a number of multinational global giants and to consider any recommendations he may make before deciding on any legislative measures.”
“Profit-shifting by multinationals is a major concern but we must remember that a global approach is essential and moreover I can tell you from experience that our system includes some very tough anti-avoidance measures that must be allowed to do their job.”
Mr Leibler is tax adviser to some of the wealthiest individuals and private companies in the nation.
His comments came as Tax Commissioner Chris Jordan confirmed to a Senate inquiry today that the ATO was auditing mining giants BHP Billiton and Rio Tinto over their Singapore operations.
Mr Leibler also called for an increase in the rate and a broadening of the rate of the GST to allow the government to lower income and company taxes.
He also said a review of the superannuation industry was justified but must safeguard the rights and expectations of current retirees.
Retrospective changes could not be justified, he said.
