13 August 2004
ASB Bank Taxation Position
(Statement made by John Duncan, Group General Manager Finance and Risk Management, ASB Group)
To claim ASB Bank does not pay tax at the rate of 33 cents in the dollar is a distortion of New Zealand tax law.
It would also deny the companies that operate under the ASB tax group the same tax rights as every other tax paying organisation in New Zealand.
The ASB grouping of entities can legitimately amalgamate its tax liabilities.
The Minister of Finance’s office was today quoted as saying “they [the banks] have been using legitimate vehicles”.
Each year the Bank, in its general disclosure statement, which is equivalent to an annual report, clearly states the provision it makes for taxation. It also records the offsets that are made and the level of tax it pays to the New Zealand IRD, and in offshore countries where it does business.
ASB operates completely legitimately and above board in relation to our taxation obligations.