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

 

International digital services tax – a Trojan horse for NZ?

New Zealand’s largest accounting organisation, Chartered Accountants Australia and New Zealand, is calling on the Government to drop its plans for a go-it-alone digital services tax targeting multinationals.

The international digital tax debate has now expanded and risks damaging the New Zealand tax base, said John Cuthbertson, New Zealand Tax Leader for CA ANZ. “The country needs to urgently prepare to deal with a potentially multi-billion dollar threat to the country’s tax base.

“Protecting our future tax base is fundamentally more important than our current focus on whether or not we introduce a comprehensive capital gains tax.

“Digital services taxes proposals around the world have rapidly morphed to wide-ranging international discussion on how countries carve up tax revenues on international business profits,” he said.

“The very real danger for New Zealand is that these talks are now heading down the path of a worldwide taxation system based on where customers are located, an idea which underpinned digital services taxes.

“As an exporting nation, a customer-centric tax regime represents a very damaging threat to our tax base. There is a high risk that a large part of our business tax base will go offshore.

“The digital services tax could a Trojan horse for countries like New Zealand.

“For example, under the US proposal, currently favoured at the OECD, part of the tax revenue paid by exporters, such as Fonterra and Zespri, is at risk of migrating offshore.”

Taxation based on source, and bricks and mortar, has served the global economy well since the 1920s, but it is becoming out dated as a basis of tax allocation, Cuthbertson said.

The EU and Australia were considering stand-alone digital services taxes as options when the Government announced in February it would investigate such a tax as an interim solution till an OECD consensus was reached. A discussion document is due out next month.

“Ireland, which is similar in size and economy to New Zealand, and Germany, identified concerns with a unilateral digital services tax early on and focused on the OECD option instead,” Cuthbertson said.

“Australia and the EU have since seen the risks and pulled back from a go-it-alone digital services tax.”

He said “New Zealand should do likewise and focus on what is now the main event.

“Rather than chasing a standalone digital services tax, our time would be better spent developing and executing a strategy for NZ Inc in OECD discussions which are currently proceeding under the innocuous banner of digital taxation.

“We should be looking to collaborate with like-minded, similarly impacted small trading nations, to present a uniform strong voice at OECD deliberations.

“We need to be careful what we wish for. New Zealand cannot afford to be distracted by a unilateral digital services tax.

“Our full attention is required to get the best results from the OECD table.”

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Clark Exit, Convention Centres, And The Killing Of Hachalu Hundessa


Goodbye, David Clark. In the end, the outgoing Health Minister decided that in the midst of a pandemic the best thing he could do for New Zealand would be to no longer be there – given that being there had involved hiving off on his mountain bike during a lockdown, and throwing the country’s most beloved Health bureaucrat under a bus. As Clark indicated so memorably at last week’s press conference, when it comes to managing public health risks at the border the buck stops with…that guy over there! In the aftermath of that debacle, Clark reached the same conclusion the nation had reached some time ago, that leadership just wasn’t his thing. Once again, he got on his bike.... More>>
 

Government: David Clark Resigns As Health Minister

The Prime Minister Jacinda Ardern has accepted David Clark’s resignation as Health Minister. More>>

ALSO:

Election 2020: Green Party Unveils Income Policy

The Green Party is today unveiling its Poverty Action Plan, which includes a Guaranteed Minimum Income to ensure people have enough to live with dignity. The scheme resets income support payments to ensure everyone not in full-time paid work gets at least ... More>>

ALSO:


Conservation: New Protection For Dolphins

Extensive new protections are being put in place as part of an updated plan to look after New Zealand’s native Hector’s and Māui dolphins, announced Minister of Fisheries Stuart Nash and Minister of Conservation Eugenie Sage today. More>>

ALSO:

Auckland: Water Consent Referred To Board Of Inquiry

Environment Minister David Parker has today “called in” Auckland’s application to the Waikato Regional Council to take an extra 200 million litres of water a day from the lower reaches of the Waikato River for Auckland drinking water and other municipal uses... More>>

ALSO:

Gun Law: A New Firearms System Focused On Safety

Tougher gun laws will begin to take effect from next week following the passage of new firearms legislation through Parliament today. The Minister of Police says the Third Reading of the Arms Legislation Bill is an historic milestone for community ... More>>

ALSO:

Government: Building A Stronger Health And Disability System

The Government is committing to a long-term programme of reform to build a stronger New Zealand Health and Disability System that delivers for all. More>>

ALSO:

National: Todd Muller Announces Caucus Reshuffle

Today I am confirming a minor shadow cabinet reshuffle due to the retirement of Paula Bennett. Dr Shane Reti will be ranked number 13 and will take on Associate Drug Reform. Shane has demonstrated a huge intellect and capacity for work, supporting ... More>>

Biosecurity: Winston Peters On EU Travel: 'We're Not Going To Compromise Our Country's Health'

Foreign Minister Winston Peters says New Zealanders who head to Europe on holiday should pay for their two weeks' hotel quarantine when they return. More>>

Economy: Infrastructure Investment To Create Jobs, Kick-Start COVID Rebuild

A new package of infrastructure investments will help kick-start the post-COVID rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand. Finance Minister Grant Robertson and Infrastructure Minister ... More>>

ALSO:

Covid-19: Isolation System To Be Beefed Up After Stress

A range of improvements are already underway to address issues identified in the rapid review of the Managed Isolation and Quarantine system released today, Housing Minister Megan Woods said. The review was commissioned just over a week ago to identify ... More>>

ALSO:

Election 2020: Parties Get Into Gear

ACT has today announced its list for the 2020 General Election. “The calibre and experience of our candidates will impress voters of every persuasion. We have candidates from all walks of life. People who have built their homes, families and businesses ... More>>

ALSO:


Int'l Trade: New Zealand To Host Virtual APEC In 2021

Foreign Affairs Minister Winston Peters and Trade and Export Growth Minister David Parker announced today that New Zealand’s hosting of APEC in 2021 will go ahead using virtual digital platforms. Mr Peters said the global disruption caused by COVID-19, ... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels