Parliament

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

 

OECD releases full BEPS action plan

Hon Bill English
Minister of Finance
Hon Todd McClay
Minister of Revenue

6 October 2015


OECD releases full BEPS action plan

The OECD last night released its final package of actions to address base erosion and profit shifting (BEPS). The Minister of Finance Bill English, and Minister of Revenue, Todd McClay say that the plan, representing two years of intensive work by the OECD and G20 nations will be a significant step forward in the fight against BEPS.

“BEPS behaviours can result in multinationals paying little or no tax anywhere in the world, so this announcement is a big step forward and the culmination of over two years’ work by the international community” Mr English says.

The package released last night by the OECD finalises the BEPS Action Plan, the first half of which had been delivered late last year.

The plan aims to address root causes rather than dealing with symptoms. Important causes of BEPS are the lack of transparency in tax systems, the misalignment between countries’ tax rules and the effectiveness of rules in general. As such, the plan includes measures ranging from new minimum standards to revision of existing standards, and developing common approaches amongst nations. Member countries have also agreed to peer review and monitoring.

“Issues facing tax jurisdictions today were undreamt of when tax rules and tax systems were first designed” says Mr McClay.

“The central issue has always been that international tax standards have not kept pace with developments in the global economy. Tax rules were developed in an age of steam and iron. In the meantime, business practices have progressed light years from that point. So this OECD co-ordinated approach will mean we will now have international consensus on tax law standards bringing global tax rules firmly up to date.

“The plan gives us all a good basis to take stock of our international tax rules and domestic rules too,” says Mr McClay.

However Mr McClay says that no decisions have been made by New Zealand on implementation or timing and that any changes would be subject to the usual public consultation process.

Mr English agrees; “We need to always consider the effect that tax policy has on the productive sector of the economy. Decisions have to be made as to what extent the OECD recommendations are applicable to New Zealand and the best way to implement them, giving thought to matters such as compliance costs. This will be high on the agenda for the Government in the coming months.

“It matters because New Zealand is becoming more and more attractive as a place to do business and invest in, so it’s critical that we continue to strengthen our tax rules to ensure overseas companies pay their fair share” he says.

“This is not about hammering large multinationals. The OECD makes the point that the current situation often results in double non taxation, that is, corporates not paying tax either in their home jurisdiction or in the country they’re doing business in.

“The OECD’s BEPS plan is careful to avoid over taxation. The Government wants to ensure that New Zealand remains a good place to do business, but also wants to make sure that everyone pays their fair share of tax” says Mr English.

Go to http://www.oecd.org/tax/beps.htm to find full details of the OECD material.


ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On Why Herd Immunity Isn’t A Valid Option, And What’s With Our Reluctance To Wear Masks?

Herd immunity has recently bounced back into the headlines as a tool for managing Covid-19, and as a supposed alternative to lockdowns. In the US, a group of scientists was recently brought together in the town of Great Barrington, Massachusetts by a think tank funded by the Koch brothers. The assembled scientists signed the so called Barrington Declaration, which promotes herd immunity as a rational means of re-opening US public schools and the economy at large... More>>

 

Gordon Campbell: On National Being Shafted By Its Own Creation

As it licks its wounds, let’s hope the National Party can still find time to look back with some pride at what it has achieved in Epsom. The Act Party’s nationwide success on Saturday night has been a tribute to National’s foresight, and to its ... More>>

ALSO:

Green Party: 'Fruitful Discussions ... Further Discussions To Have'

The Green Party says there is a negotiation going on with the Labour Party, but there are more discussions to be had. More>>

ALSO:


Border: No Changes To Border Exemptions After Fishing Crew Test Covid-19 Positive

The cases were detected after routine day three testing but the immigration minister and air commodore agree there's no need to change border exemptions. More>>

PSA: Labour-Led Government Has Mandate For Transformation, Equality And Transparency

The Public Service Association welcomes the progressive electoral landslide New Zealand voters delivered on Saturday, and the union says its members look forward to implementing policies that reduce poverty and inequality, support affordable housing ... More>>

ALSO:


Stats NZ: New Report Shows Significant Changes To New Zealand’s Climate

Climate change is already happening in New Zealand and could have a profound impact on future generations of New Zealanders, a new report from the Ministry for the Environment and Stats NZ says. Our atmosphere and climate 2020 , released today, includes analysis ... More>>

ALSO:

Judith Collins: Obese People Must Take Responsibility For 'personal Choices'

National Party leader Judith Collins has described obesity as a weakness and says people should not 'blame systems for personal choices'. More>>

Māori Party: Poll Reveals Tamihere On Cusp Of Historic Māori Movement Election Victory

John Tamihere’s election campaign is on the rise and on track to return the Māori Party to parliament, a new Māori TV poll has revealed. The poll released on 11 October during the seventh and final Māori TV Maori Electoral campaign coverage has Tamihere ... More>>

Gordon Campbell: On Four-Year Terms Of Parliament, And On How The US Courts Are Dismantling Democracy

Last week, the issue of four-year parliamentary terms surfaced again. Infuriatingly, it is being discussed purely in terms of its convenience for political parties. They’d get so much more time to enact their policies, free of scrutiny or sanction by voters ... More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels