Modern Australian

Companies that pay more tax deliver shareholders better returns: new study

  • Written by Kerrie Sadiq, Professor of Taxation, QUT Business School, Queensland University of Technology

Treasurer Scott Morrison is quick to spruik the shareholder benefits of cutting corporate tax rates further, as the usual logic goes that if a corporation pays less tax, shareholders should get a greater return.

But in a recent pilot study, we found companies that paid a greater percentage of their sales or revenues as tax, provided shareholders...