News | Politics
20 Nov 2017 13:02
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Politics

    Labour's tax plan is the wrong one: Joyce

    Finance Minister Steven Joyce says international co-operation is the key to making multinationals pay their fair share of tax.

    Finance Minister Steven Joyce says international co-operation is the key to making multinationals pay their fair share of tax, not writing to them with threats of punitive action.

    Labour leader Andrew Little said on Tuesday he had written to about 50 multinationals operating in New Zealand telling them they should pay their fair share.

    If they deliberately avoided paying, a Labour-led government would impose penalty taxes.

    Mr Little said Labour was budgeting an extra $200 million a year in revenue from the multinationals.

    Mr Joyce said the government had been working with other OECD countries and last month signed an international agreement on multinational taxation measures.

    The rules around them would be tightened and Mr Joyce said he expected about $100m a year in tax revenue.

    "We're doing the real grunt work and Labour is nowhere near it," he said.

    "The issue is making sure we work with other countries, make sure companies can't shift profits into other jurisdictions."

    Mr Little has released the letter he's written to the companies, without identifying them.

    Facebook, Google and Apple have been reported as examples of multinationals that pay very little tax in New Zealand compared with the size of their operations.

    Taxpayers' Union economist Jim Rose doesn't think Labour would get anything like the expected $200m a year.

    "Comparing Labour's revenue forecast of $200m to the United Kingdom's forecast revenue of 350m British pounds for effectively the same policy makes it look even more unrealistic," he said.

    "London is a global financial centre where plenty of companies should be banking their profits at their London-based global headquarters, so would presumably gain the most from tax reallocation measures."

    © 2017 NZN, NZCity

     Other Politics News
     19 Nov: Road toll prompts minister to call meeting
     19 Nov: Jacinda Ardern narrates play in Auckland
     18 Nov: Ardern outlines post-settlement era
     18 Nov: TOP to remain a 'rowdy disruptor'
     17 Nov: Online memes mock Indonesia's parliamentary Speaker Setya Novanto
     17 Nov: Govt ponders booming tourism sectors
     17 Nov: APEC shake-up planned for Auckland 2021
     Top Stories

    Scotland could trouble ABs: Townsend More...

    Property CV's not an excuse to spend More...

     Today's News

    Law and Order:
    Alleged kidnap 'not Romeo and Juliet' 12:57

    Tina Turner will find it "painful" seeing her ex-husband Ike Turner portrayed on stage 12:50

    Law and Order:
    Shot cabbie recovering after surgery 12:37

    Property CV's not an excuse to spend 12:37

    Accident and Emergency:
    New Caledonia quake no threat to NZ 12:37

    Hayley Atwell feels "lucky" she wasn't sexually harassed by Harvey Weinstein 12:20

    Should tourists still visit Myanmar despite the violence towards the Rohingya? 12:17

    Living & Travel:
    Hunter and three sons found in Far North 12:17

    Law and Order:
    Police looking for missing Pukekohe man 11:57

    Luke Bryan is "a little" jealous of Blake Shelton being named the Sexiest Man Alive 11:50

     News Search

    Power Search

    © 2017 New Zealand City Ltd