This is the third of a series of posts providing extra information for an article in The Conversation about land taxes.
Federal treasury just released a scoping paper on corporate taxation and have warned that they are basically impotent when it comes to preventing profit shifting by multinational companies. We’ve all heard about high profile cases like Apple and Google but this kind of behaviour is very widespread. These companies can’t shift the land they use overseas. Billionaires can’t pay clever accountants to hide the land they and their companies use in the same way they hide their income in trusts, super funds and other, more arcane tax dodging instruments. They can be more efficient with their use of land in order to reduce tax – but this is a good thing.
For more information on land taxes and land prices, see the Henry Tax Review Volume 2 pp. 247-270.