The only sane argument to be made against this practice is that governments should make their tax systems more favourable to companies operating in their jurisdiction so they have no reason to move their profits to a more favourable jurisdiction.

Australia has, if I understand correctly, the highest corporate profit tax rate in the OECD. Higher than New Zealand, the US, Canada, the UK, Ireland, Japan, Turkey, China, Greece, Belgium, Denmark, Sweden, Iran, Zimbabwe, Iceland, Finland, Ukraine, Hungary, Qatar, Iceland, anyway…

Why wouldn’t you expatriate your profits and retain your loses as a multinational operating in Australia?

Australia is increasingly and rapidly driving itself toward a future where higher taxes result in lower tax revenues as individuals, business, and corporations pick up their capital and leave for jurisdictions with more favourable regulations and taxation.

Governments shouldn’t aim to maximise taxation, that always kills innovation and the entrepreneurial spirit. They should aim to optimise taxation to a point where businesses flourish and infrastructure is built and maintained, and otherwise generally not be heard from much at all.