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


Labour’s tax avoidance policy redundant

Labour’s tax avoidance policy redundant

Revenue Minister Todd McClay has accused Labour of announcing policy on tax avoidance that either misses the point or is completely redundant.

“This National-led Government has an unprecedented record of stamping out tax avoidance. Budgets 2010, 2012 and 2014 included around $330 million of additional spending on tax compliance activities,” Mr McClay says.

“We are seeing some outstanding results from this investment.”

“In 2013 compliance work for ‘hidden economy’ tax evasion gave a return of $45 million, $5.60 for every dollar spent. Going after aggressive tax planning identified $206 million of discrepancies, a return of $42.90 on every dollar!”

“As for the proposal to ‘embed’ IRD auditors to catch multinational tax avoidance, once again this is redundant.”

“Inland Revenue already has in place the Significant Enterprises Initiative targeted at multinational companies and other organisations with an annual turnover in excess of $80 million. These companies are required to provide IRD with copies of their financial statements, tax reconciliations and group structures at return filing time.”

“For the 60 top tax paying corporates, an IRD compliance manager is assigned to sort out tax issues in real time. This lets IRD examine a wider range of multinationals more closely and as a result, multinationals receive far more tailored information requests and audit inquiries.”

“If Labour thinks their policy will make one dollar of difference to Google, Facebook or Apple they need a reality check.”

“New Zealand does not have tax jurisdiction over companies that are not based here, the only way to solve global tax avoidance issues such as base erosion and profit shifting is through international cooperation at the OECD and G20, which is why we are so heavily involved in those initiatives.”

“I suppose we can be thankful that Labour has at least flip-flopped on banning Facebook,” says Mr McClay.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Climate Marches: New Zealanders March For Solutions Not Pollution

Ahead of the UN Climate Summit in Paris more than 15,000 New Zealanders have taken part in the Peoples Climate march in Auckland, kicking off the largest climate mobilisation the world has ever seen... More>>


Labour: Little Announces New Shadow Cabinet

“Labour had an impressive intake of fresh faces after last year’s election and newest MPs have now had a year to show what they’re made of. This reshuffle rewards hard work and continues my drive to renew our Caucus line up." More>>


Because Reasons: Someone Reckons David Seymour Is Politician Of The Year

Trans Tasman's 11th annual Roll Call has thrown a curve ball this year, ignoring the likes of John Key, Bill English, and Winston Peters to pick its politician of the year from the ranks of the new generation. More>>


Whaling: NZ Deeply Disappointed By Japan's Decision

“New Zealand is strongly opposed to whaling in the Southern Ocean. We call on Japan to take heed of the 2014 International Court of Justice decision and international scientific advice concerning their whaling activities.” More>>


Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Closing Schools And Such: Interim Redcliffs Decision Announced

“While the school’s board has argued that circumstances that could give rise to potential disruption are extremely unlikely, advice from technical experts has shown these concerns cannot be ruled out." More>>


Get More From Scoop



More RSS  RSS News AlertsNews Alerts
Search Scoop  
Powered by Vodafone
NZ independent news