Finally National acts on multinational tax
MP for Mt Roskill
Spokesperson for Revenue
3 March 2017
Finally National acts on multinational tax after dragging its feet for years
Labour welcomes the Government’s belated recognition of the fact that some multinational corporates are not paying their fair share of tax, says Labour’s Revenue spokesperson Michael Wood.
“However we have to wonder why it’s taken nine years of delay tactics to get there. Just last year Michael Woodhouse said “I am satisfied that we have good, robust rules in place” and “If you are asking me if New Zealand is missing out somehow, I have seen no information to suggest that that is the case”. Yet today the IRD produces a report showing that multinational companies are avoiding $100’s of millions a year.
“You have to wonder if the Minister’s actions have got a lot more to with this year’s election then any real attempt to force multinationals to pay their share of tax.
“For Kiwis it’s important that the tax is paid, as credible experts estimate it’s worth somewhere between $500 million and $1 billion in lost revenue. That’s revenue that should be supporting our schools, hospitals, and police.
“We also believe that we should have at our disposal all the tools we need to get this lost money. As such the current process should include greater consideration of a Diverted Profits Tax.
“We think kudos is due the Minister for this first step. Only a Labour-led government will make sure our tax system is fit-for-purpose, and that the ‘big boys’ contribute to our schools and hospitals - just like working kiwis do,” says Michael Wood.