Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Dunne: NZ in global push for multinationals to pay fair tax

Hon Peter Dunne
Minister of Revenue

19 December 2012

Dunne: NZ in global push for multinationals to pay fair tax share

New Zealand is on the right track on the issue of taxing large multinationals and is committed to working with the OECD and co-ordinating closely with Australia, Revenue Minister Peter Dunne said today in releasing an officials’ report on the issue.

“It is a problem facing many countries, but no one country can solve it alone. It is a global issue and it will have a global solution, and New Zealand is constructively working on being part of that solution,” Mr Dunne said.

He said New Zealand will have a representative at the OECD’s Committee of Fiscal Affairs meeting in Paris next month, where taxing multinationals will be an important agenda item.

“There is no doubt that more needs to be done, but I am satisfied that we are on the right track.”

The Inland Revenue and Treasury report examines concerns that large multinationals are paying little or no tax in the countries they operate in, such as New Zealand, as well as in their home countries.

Mr. Dunne called for the report earlier this month.

“There is growing international outrage over this issue. People are offended that these large companies are often not paying any tax anywhere at all.

“The global community is saying this is not good enough and we are going to do something about it,” he said.

The report says that the issue can only be dealt with effectively as part of a global effort with other OECD nations. It also indicates areas within New Zealand’s domestic tax laws which may be further strengthened to protect the tax base.

“And we are already working on addressing those issues, and there will be proposals put out for consultation early in the new year,” Mr Dunne said.

He said the issue was in a highly complex area of tax law, and made more difficult by the need for international co-operation.

“Tax regimes around the world have largely been developed for an industrial age, and have had trouble keeping up with new business models and technologies in the internet age where companies are not contained by location or national borders,” Mr Dunne said.

“That is the shared challenge New Zealand and a lot of other nations face today.

“The problem is not just that these large companies are not paying substantial tax here, but that they tend not to be paying substantial tax anywhere.

Mr Dunne said that in the last quarter New Zealand has committed to negotiating a FATCA agreement with the US Government; signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters; and expanded its network of double-tax agreements.

“With the recent signing of the new agreement with Papua New Guinea, New Zealand now has 38 double tax agreements for exchanging information,” he said.

“Step by considered step, we are closing the gaps, and will continue to do so with the international community, so large multinationals will pay their fair share of tax,” he said.

The full report is available at www.taxpolicy.ird.govt.nz

Mr Dunne said that he was aware that people would have views on the matter and that he had instructed officials to keep him updated on the issue. He has also asked officials to take opportunities to engage with interested parties in the new year.

Mr Dunne said people are welcome to submit comments on the report to Inland Revenue at Policy.Webmaster@ird.govt.nz

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014.

During his visit, President Xi Jinping met with Governor-General Jerry Mateparae, and held talks with Prime Minister John Key. The leaders had an in-depth exchange of views on bilateral relations as well as regional and international issues of common interest. More>>

 
 

Parliament Today:

Savings Targets: Health Procurement Plan Changes Direction

Next steps in implementing DHB shared services programme Health Minister Jonathan Coleman says the Government has agreed to explore a proposal put forward by DHBs to move implementation of the shared services programme to a DHB-owned vehicle. More>>

ALSO:

More on Health Policy:

Auckland Unification: 'No IT Cost Blowout' (Just More Expensive)

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly. More>>

ALSO:

Other Expensive Things:

Gordon Campbell: On The SAS Role Against Islamic State, And Podemos

Only 25% of the US bombing runs are even managing to locate IS targets worth bombing. As the NYT explains at length, this underlines the need for better on-the-ground intelligence to direct the air campaign to where the bad guys have holed up... More>>

ALSO:

Public Service: Commission Calls For Answers On Handling Of CERA Harassment

EEO Commissioner Dr Jackie Blue is deeply concerned about the way in which the State Services Commission has handled sexual allegations made against CERA chief executive Roger Sutton this week and is calling for answers. More>>

ALSO:

Gordon Campbell:
On Andrew Little’s Victory

So Andrew Little has won the leadership – by the narrowest possible margin – from Grant Robertson, and has already been depicted by commentators as being simultaneously (a) the creature of the trade unions and (b) the most centrist of the four candidates, which would be an interesting trick to see someone try in a game of Twister. More>>

ALSO:

China President Wishlists: Greens Welcome Xi, But Human Rights Need To Be On Agenda

“President Xi has made some progress on climate change, but he must also lift the Chinese government’s game on human rights issues,” Green Party Co-leader Dr Russel Norman said... It is important that our Government continues to urge the Chinese government to show restraint and respect human rights in both Tibet and the Xinjiang province.” More>>

ALSO:

Airport Security Breach: CAA Fines Minister

Minister Brownlee has been issued an infringement notice and is required to pay a $2000 infringement fine for breaching Civil Aviation Rule 19.357(b), which states no person may be in an airport security area without an appropriate identity card or document. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news