3 Mar 2017

Collins to announce tax crackdown on multinationals

From Morning Report, 7:13 am on 3 March 2017

The Government will outline its plan today to make global corporate giants pay their fair share of tax in New Zealand.


apple Photo: AFP

Companies like Apple and Google have made themselves unpopular with governments around the world by racking up vast revenues but apparently very little profit.

The Revenue Minister, Judith Collins, is talking at a meeting of international tax officials in Queenstown this morning and will outline what the Government intends doing.

Ms Collins says that New Zealand loses out on about 300 million dollars a year at the moment - and they want international companies to pay their fair share too.

"This will be about making sure that multinational companies are paying their fair share of tax in New Zealand from profits earned in New Zealand"

Ms Collins says the government is keen for those in the industry to be consulted on the Base Erosion and Profit Shifting or "Beps" consultation documents so they can help spot any "fish hooks".

PWC tax partner Geof Nightingale will be at the tax announcement today.

He says it sounds as if the government is moving in line with what the OECD recommends. And that means the proposed changes won't scare businesses away.

Labour says they want today's announcement to be a serious plan, not a lightweight one.

Labour's revenue spokesman, Michael Wood, says. "A nurse pays her tax. A guy who  runs a concreting company pays his tax. We shouldn't have some of the biggest companies in the world coming to New Zealand and not paying their fair share of tax."