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


Government caves to multi-national tax avoiders

Michael Wood
MP for Mt Roskill
Spokesperson for Revenue
Ethnic Communities
Consumer Affairs

17th August 2017

Government caves to multi-national tax avoiders in the shadows

News that the Government has secretly caved in to the demands of multi-national tax avoiders come as no surprise, but will disappoint Kiwi taxpayers, says Labour’s spokesman for Revenue Michael Wood.

“It has been revealed that a United States lobby group, the Digital Economy Group piled the pressure on the Government in a secretive submissions process, to water down proposals to stop ‘profit shifting’, one of the key methods of multi-national tax avoidance.

“The Digital Economy Group refuses to reveal who its clients are but the Guardian newspaper believes they include multi-national tech companies such as Apple, Google, and Amazon.

“Last month when the government threw an unprecedented blanket of secrecy over the submissions process I warned that: ‘It creates a concern that those with vested interests in the policy under consideration are being protected. Especially in an area like multi-national taxation, I would have thought the Government would have wanted to be more open.’

“It now appears that this is exactly what has happened. After trying to talk tough on multi-national tax avoidance, the Government has relented on the original proposals to bring multi nationals with global turnover of $1.2 billion and who have a sales presence in New Zealand, into the tax loop.

“This change happened after the Digital Economy Group submitted in secret and ridiculously claimed that the proposed rules were ‘extreme’. Had the submission been made public there could have been public scrutiny of these claims and exposure of the vested interests at work. This secretive cave-in is a complete disgrace at the tail end of a Government that has allowed multi-national tax avoidance to thrive.

“We must have a robust tax system where you can’t escape paying your fair share simply because you are big and you have a powerful lobby. Labour will make multi-nationals pay their fair share so that Kiwi taxpayers don’t have to shoulder the burden of $300 million of avoided tax every year,” says Michael Wood.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>


MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>


Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>


Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>


Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>


Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>





Featured InfoPages