Sharechat Logo

Key doubts a unilateral 'Google tax' would work

Monday 27th June 2016

Text too small?

The New Zealand government is sticking with the OECD's process for pushing multi-national corporations to pay more tax rather than pursuing the kind of 'Google tax' being mooted in Australia and the UK, said Prime Minister John Key.

Commenting on the release of the government's response to the latest leg of the OECD's base-erosion and profit-sharing (BEPS) tax project, Key said officials were sceptical that a tax based on the declared annual turnover in New Zealand by multi-nationals such as Google or Facebook would collect much revenue.

New Zealand was working "on our own model", he said, but declined to comment on what that approach might entail, pointing instead to the government's preference to go along with the BEPS process.

"In our view and the advice we had initially was that New Zealand wouldn't earn a lot more revenue" from a tax based on multi-nationals' local turnover, he said. "The officials don't think there's a missing pot of gold out there.

"By far, the only really robust way to work is with the OECD. There's quite a lot of scepticism that unilateral taxes would work.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report