LEAKED transactions files known as Paradise Papers exposed gross tax avoidance schemes employed by world political leaders, elite and multinational corporations.
When the ultra-rich do not pay all the necessary taxes, the public service gets affected in the relevant nations.
Many countries are reviewing the Paradise Papers and probing a way forward.
Apart from individual state’s efforts, an international multi-sectoral approach by many countries will assist.
This is to rein in tax avoidance schemes using tax havens and different treatment of tax rules on allowable deductions, tax credits, income, residency and so on.
Experts estimate that lower tax will benefit USA more as its multinational corporations move much of their profits from their worldwide income to their home country. Papua New Guinea leadership could pay attention to the Paradise Papers and current discussions on them.
Going forward PNG will be affected.
The sooner it gets on board and contribute to the discussions, it will be a taker of international rules in the making.