Sharechat Logo

Little says Labour would target $600M in unpaid taxes from multinationals

Tuesday 18th July 2017

Text too small?

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little.

A Labour government would increase funding to Inland Revenue to chase unpaid taxes and give it the power to impose tax "at a penalty rate if they believe that tax has been deliberately avoided," he said.

“Even on current tax settings, multinationals should be paying more. Labour is budgeting to collect an additional $600 million over three years. We will resource IRD’s investigations unit to do their job properly with an additional $30 million injection each year, Little said in a statement. 

He said the UK has had a positive experience adopting such measures and companies such as Amazon were now booking their profits in the UK rather than in jurisdictions with lower tax requirements.

Little also released an open letter written to multinational companies in which he invites them to a round-table meeting immediately after the Sept. 23 election, assuming Labour wins power.

"I intend to address the rising discontent among New Zealanders regarding multinational companies not contributing fairly," he says in the letter. "I invite you to attend this meeting and work together to ensure New Zealand is a fair place to operate and a great place to live. I look forward to discussing this with you further."

“A diverted profits tax is an important tool to encourage multinationals to behave appropriately and pay their fair share of tax like every New Zealander who works for a living," he said. "They don’t have tricky accountants to help them dodge their obligations."

(BusinessDesk)

  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:

Tighter overseas investment regime to target more than houses
NZX goes back to basics in 'fundamental reset'
Xero, NZX shares fall as local market darling announces plan to delist, shift to ASX
NZ shares at record highs has stoked trading activity, NZX metrics show
NZ commodity prices fall in October on weaker dairy prices
Auckland house sales drop in October, prices remain high: Barfoot
Rail, forestry, green tech and regions winners in Labour's coalition deals
NZ dollar falls as NZ First backs Labour-led government
NZ third quarter inflation higher than expected on housing-related costs
ComCom went outside its role in rejecting StuffMe merger, court hears

IRG See IRG research reports