Australia is losing almost $8bn a year from profit-shifting by multinational corporations, despite attempts by regulators to crack down on the practice.

Profit-shifting is a process where companies strategically move profits from their subsidiaries in higher tax countries where their economic activity takes place, to other subsidiaries in ‘tax havens’ to avoid paying their fair share of tax. Almost 600 large private companies operating in Australia paid no tax in 2013–14.

The Turnbull Government passed legislation last year to address multinational tax avoidance - but it addresses just 7 companies with a global income of at least $1bn - letting hundreds of companies continue to get away with siphoning money out of Australia through tax havens.