Spark supports Government plans to act on multi-national tax
Spark New Zealand supports Government plans to act on multi-national tax arrangements
“Multinational taxation arrangements are costing New Zealand hundreds of millions every year in lost taxation revenues,” says Spark New Zealand Managing Director Simon Moutter, “so it’s encouraging to see the Government identifying this issue as a key focus for tax policy work.
“As a business leader and passionate New Zealander, I’m concerned about the way many large multinational companies, especially ‘weightless’ businesses operating in the digital sector, are exploiting the differences between tax jurisdictions to pay minimal tax in many countries in which they do business,” says Mr Moutter.
“What they do may well be possible under tax laws, but we should understand the implications and ask ourselves whether it’s right or not. Every tax dollar these digital companies avoid paying in New Zealand has to be made up by New Zealand taxpayers. The social and economic implications are significant.”
Notwithstanding the coordinated global approach being led by the OECD, Mr Moutter says other countries like Australia and the United Kingdom are already taking steps, so the sooner the issue is addressed in New Zealand, the better.