News | Politics
25 Sep 2017 10:03
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • 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
     25 Sep: English yet to phone Peters after election
     24 Sep: Next NZ government awaits Peters' decision
     24 Sep: Donald Trump: North Korea says attack on US inevitable after 'Mr Evil President', 'Rocket Man' trade barbs
     24 Sep: Northland loss is a terrible shame: Peters
     24 Sep: PM holds the strongest hand
     24 Sep: Host of new MPs for parliament
     24 Sep: Voter turnout on the rise
     Top Stories

    Tasman overwhelm Southland in NPC mismatch More...

    Fletcher hires KPMG for building review More...

     Today's News

    Fletcher hires KPMG for building review 9:27

    Bali volcano: Evacuations continue as tremors suggest Mount Agung eruption imminent 8:47

    English yet to phone Peters after election 8:17

    Heavy rain to batter West Coast 8:07

    Crash costs Smith at road cycling worlds 7:57

    Investigation into Dunedin fire continues 7:47

    Neesham, Broom to miss India tour 7:37

    Lower Hutt man killed in Wairarapa crash 7:27

    Parker camp weighs up Japan, US fights 7:17

    Accident and Emergency:
    NZ fuel industry to rebuild stocks 7:07

     News Search

    Power Search

    © 2017 New Zealand City Ltd