Parliament

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

 

Multinationals must pay fair share of tax

Andrew Little

Leader of the Opposition

MEDIA STATEMENT

EMBARGOED UNTIL 5AM TUESDAY 18 JULY

18 July 2017

Multinationals must pay fair share of tax

A Labour Government will crack down on multinational companies that are dodging paying their fair share of tax, says Labour Leader Andrew Little.

“New Zealanders are missing out by hundreds of millions according to the IRD because multinational companies can hide their profits in complicated international schemes.

“I have now written to the largest multinational companies, outlining Labour’s intention to make every company pay their fair share of tax like everybody else.

“The fact is, many multinationals are ducking their tax obligation and leaving it to Kiwi taxpayers to foot the bill. This is simply not fair. At a time when we need to urgently invest in hospitals, schools and housing, we need multinationals to make their fair contribution too.

“If multinationals aren’t prepared to pay their fair share, Labour will introduce a diverted profits tax, to enable New Zealand tax authorities to impose tax at a penalty rate if they believe that tax has been deliberately avoided.

“The experience in the United Kingdom has been positive, as companies such as Amazon are now booking their profits in the UK rather than in the tax haven Luxembourg.

“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. They don’t have tricky accountants to help them dodge their obligations.

“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 $30m injection each year.

“For nine years National has been going soft on multinationals. It’s a joke that the Government itself has estimated that multinationals are avoiding $300 million of tax per year, but is only budgeting on its policies recouping $100 million of that.

“With the right priorities and resource that Labour commits to, over three years New Zealand will be better off by $600 million more than what the Government has budgeted for.

“That’s $600 million this country desperately needs for more classrooms, better health and more social housing. It’s simply not acceptable that Kiwi kids are doing homework in the back of cars while multinational companies reap big profits but skirt around their obligations to pay tax.

“The Government’s performance on multinational tax is pathetic. It’s time for a fresh approach. Only a Labour-led Government will commit to everyone paying their fair share, to have hospitals, schools and housing funded properly,” says Andrew Little.

See attached letter to multinational companies

http://img.scoop.co.nz/media/pdfs/1707/170717LITTLE_AMultinationals.pdf


ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Ch-Ch-Changes At IRD

job cuts aren’t happening at the IRD, exactly. Instead, there’s apparently a ‘transformation’ in store, and jobs won’t be axed ; no, they will be ‘transformed’ before our eyes into… non-jobs, if you happen to be among the unlucky legion of 1,900 who are being lined up for transformation, which seems to work rather like a secular version of the Rapture.

Except that at IRD, not even your shoes will be left behind. More>>

 

Christchurch Mental Health: Hospital Too 'Awful' For Reviewers To Visit

Jonathan Coleman has to stop the stalling over a new building for mental health services in Christchurch to replace the quake damaged Princess Margaret Hospital, says Labour’s Health spokesperson David Clark... More>>

ALSO:

Greens Call For Govt Action: Children Sick Because Of NZ Housing

The Royal Australasian College of Physicians president-elect said today that children with preventable respiratory illnesses are being re-admitted to hospital because they're being sent back to cold, damp homes. More>>

ALSO:

Less Tax Cut, More Spending: Labour Launches Fiscal Plan

“Labour will invest $8 billion more in health, $4 billion more in education and $5 billion more for Kiwi families through Working for Families, Best Start and the Winter Energy Payment than the Budget 2017 projections for the forecast period.” More>>

ALSO:

Gordon Campbell: On The Greens’ Room For Political Pragmatism

The Greens here are currently being criticized by the commentariat for not making the same kind of pragmatic choices that sunk the Democrats in Australia. More>>

Gordon Campbell: On Being Humane About Welfare, Child Support, And Tax

It made for an unusual Venn diagram, but Greens co-leader Metiria Turei and Finance Minister Steven Joyce were briefly sharing some common elements this week in the set that says – hey, don’t use the powers of the state in ways guaranteed to make the system you’re trying to defend worse, not better. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election