Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Oxfam report on multinational drug companies misleading

Oxfam report on the tax affairs of multinational drug companies labelled misleading by Inland Revenue

The Oxfam report claiming pharmaceutical companies in New Zealand are underpaying tax by some $21 million completely misrepresents the situation here, says Inland Revenue international strategy manager, John Nash.

“Obviously we can’t comment on specific taxpayers but taking a global profitability figure and applying it across the board, as this report does, cannot illustrate what’s really happening in this country,” he said.

“The report tries to apply a globally derived profit margin figure of 15-16% to New Zealand drug company revenue of $519m and concludes that they have underpaid tax by $21 million. This is clearly incorrect given the type of operations that multinational pharmaceutical companies actually undertake in New Zealand,” said Mr Nash.

He said the Oxfam methodology applied a global average profit margin to the New Zealand operations of pharmaceutical companies while at the same time acknowledging that profit margins were not uniform all over the world.

“The main driver of profitability in this industry is the creation and development of intellectual property but such activities are not generally carried out in New Zealand.

“It’s important to examine what multinationals actually do in a specific country such as New Zealand and how value is added, before arriving at a conclusion that insufficient taxation has been paid. The New Zealand operations of pharmaceutical companies are almost entirely lower margin activities like distribution.

“We also have a very active regulator in Pharmac, which impacts the profitability of pharmaceutical companies here.”

Mr Nash said Inland Revenue is working closely with multinationals of all kinds operating in New Zealand to ensure compliance as well as working with the OECD in the collective effort to improve compliance by multinationals worldwide.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Covid-19: Dissolution Of Parliament Delayed As Govt Hunts Source Of New infections


The dissolution of Parliament has been deferred by at a least a few days due to the new covid-19 cases, Prime Minister Jacinda Ardern said.
This was in case Parliament had to be reconvened as more information came to light, Ardern said at a briefing on the three-day level 3 lockdown in Auckland and level 2 alert for the rest of the country.
A decision about the dissolution of Parliament and any flow on effects for the timing of the election would be considered on Monday, Ardern said... More>>

 

National: Emma Mellow As Auckland Central Candidate

Tonight the National Party has selected Emma Mellow to stand in the Auckland Central electorate for the 2020 General Election. Emma Mellow replaces retiring MP Nikki Kaye who first won the seat from Labour in 2008. Emma leads a team of communications ... More>>

ALSO:

Travel: Update On New Zealand And The Cook Islands Bubble

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Henry Puna have welcomed the completion of phase one in the establishment of a travel bubble between New Zealand and the Cook Island. More>>

Election 2020: Labour Launch

E ngā mana e ngā reo Ngāti whātua ngā mana whenua o Tāmaki Makaurau, e tika te kōrero Ehara taku toa he toa (taki tahi) he toa (taki tini) No rēira tātou e huihui mai nei, ka ‘Hoake tonu tātou’ Thank you for that welcome. And thank ... More>>

Gordon Campbell: On Political Twins, And On Labour Extending Its Wage Subsidy Scheme

A quick quiz for the weekend. Which political party currently represented in Parliament issued a press release yesterday that contained these stirring passages: “[We have] long supported a free trade and free movement area between Canada, Australia, New ... More>>

ALSO:

Parliament Adjourns: Adjournment Debate: Speaker Trevor Mallard

The 52 Parliament has sat for the last time before the September Election. It sat for 245 days... More>>

ALSO:

E-Cigarettes: Vaping Legislation Passes

Landmark legislation passed today puts New Zealand on track to saving thousands of lives and having a smokefree generation sooner rather than later, Associate Health Minister, Jenny Salesa says. The Smokefree Environments and Regulated Products (Vaping) ... More>>

ALSO:


Covid-19: Poll On Management Approval

New Zealanders’ overall trust in the Ministry of Health and Government to manage the COVID-19 pandemic is at 82%, down from 91% during April. Overall distrust that the Ministry and Government will manage it in ways which best protect themselves More>>

Election 2020: National Releases 2020 Party List

National’s 2020 Party List is a strong mix of experience coming up through our Caucus, and new and exciting talent joining our team from communities across New Zealand, Party President Peter Goodfellow says. “The National Party is incredibly ... More>>

Horizon Research Limited: How Judith Collins Stopped The Bleeding

Horizon Research includes questions on voting from time to time in its surveys – for both forthcoming referenda and general elections. More>>

Your Vote 2020: Bringing Election Coverage To Viewers Across TVNZ Channels And Platforms

As New Zealand gets ready to head to the ballot box this September, 1 NEWS is bringing voters comprehensive coverage and analysis of this year’s General Election. TVNZ’s coverage will draw on the depth of experience held across the 1 NEWS team, says Graeme ... More>>

Economy: 30% Believe Households Worse Off, 298,000 Expect To Lose Jobs

64% of New Zealanders feel the economic position of their households is the same or better than a year ago – and 30% think it is worse or much worse, while 298,000 think they will lose their jobs in the next 12 months. Households’ perceptions ... More>>

State Services Commission: Findings Of Investigation Into COVID-19 Active Cases Privacy Breach

Deputy State Services Commissioner Helene Quilter has today announced the findings of an investigation into a breach of privacy regarding sensitive personal information. The investigation looked into who or what caused the disclosure of the information, ... More>>

International Security: New Zealand Suspends Extradition Treaty With Hong Kong

The New Zealand Government has suspended its extradition treaty with Hong Kong and made a number of other changes in light of China’s decision to pass a national security law for Hong Kong, Foreign Affairs Minister Winston Peters says. More>>

ALSO:


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels