Multinationals tax legislation set up

Legislation just introduced to Parliament will prevent multinationals from avoiding tax by shifting profits out of New Zealand, says Revenue Minister Stuart Nash.

The legislation also reflects an important objective of the Labour New Zealand First Coalition Agreement.

“Some multinationals use aggressive strategies to pay little or no tax anywhere in the world.

"This is known as base erosion profit shifting, or BEPS, and is a massive problem. It denies a country its taxation revenue and erodes confidence in the fairness of the tax system.

"Inland Revenue estimates the new measures could raise approximately $200 million per annum.” 

“I am very pleased to introduce legislation that will introduce fairness and equity back into the tax system. New Zealanders expect every company to pay its share of tax, no matter how big or powerful that company may be." 

The Taxation (Neutralising Base Erosion and Profit Shifting) Bill contains measures aimed at preventing multinationals from achieving a tax advantage through: 

  •   •  artificially high interest rates on loans from related parties to shift profits out of New Zealand

  •   •  hybrid mismatch arrangements that exploit differences between countries' tax rules

  •   •  artificial arrangements to avoid having a taxable presence in New Zealand; and

  •   •  related-party transactions to shift profits to offshore group members. 

“The proposed new rules will be an effective response to current avoidance techniques, but are not the end of the story. The Government will continue to investigate further options, both legislative and administrative, to counter aggressive tax practices. 

“Multinational companies are a welcome part of our economy but they must abide by the rules. They must pay their fair share of tax."

The legislation is expected to have its First Reading on Tuesday 12 December.



4 Comments

@ Val.M

Posted on 08-12-2017 17:37 | By MISS ADVENTURE

Agree, and everyone shoudl have a job and not sponge off the hard working taxpayer, then dont need tax at all.

Owners

Posted on 08-12-2017 13:57 | By sangrae

Captain Sensible who owns Go Bus ?

Taxes

Posted on 08-12-2017 13:39 | By Val.M

Yes - EVERYONE SHOULD BE PAYING THEIR FAIR SHARE! No loopholes for anyone please!

what about this

Posted on 08-12-2017 08:33 | By Captain Sensible

While they are at it, how about closing the loophole that allows companies belonging to one particular ethnic group to avoid tax....like the owners of Go Bus for example.

Leave a Comment

You must be logged in to make a comment. Login Now
Opinion Poll

Is SH2, between Katikati and Tauranga, a dangerous stretch of road?

Yes, there are too many cars on it and it’s not designed to handle that sort of traffic volume.
No, people just need to slow down and pay attention to their driving.

VOTE
VIEW RESULTS
Bay Today


Supermoon from Dive Cresent, 8pm last Sunday evening. Photo: Sally Garner.

Send us your photos from around the Bay of Plenty. kendra@thesun.co.nz