MultiNational party weak on tax avoidance
New Zealand First MP
This blue government is talking tough on their multinational cronies' tax avoidance and expecting to claw back about $100 million from them, but what about the rest of it?
Even the IRD's conservative estimates have us missing out on $300 million a year, so how does this blue government account for the remaining $200 million shortfall? Quite simply, they don't. And it's doubtful they want to. This blue ‘MultiNational' Party appears to be satisfied with less than 34 per cent of what the IRD says we, as a country are missing out on.
The rest of us have to pay the full 100 percent of our tax bills. How are New Zealand-owned and operated businesses supposed to compete if the playing field is totally skewed in favour of the multinationals?
And this missing $200 million is just the IRD's estimate. Some reckon it at $700 million a year, and others believe it could be even higher than that.
One study that arrived at this more-than-double (US$500 billion) figure of $711 billion, was the UK-based ‘Tax Justice Network' using 2013 data to calculate global losses as a result of ‘profit-shifting' – moving profits from their subsidiaries in higher-tax countries to other subsidiaries in tax havens.
The problem, according to University of Auckland professor of law Michael Littlewood, is that nobody really knows exactly how much New Zealand is missing out on. He agreed that both the $300 million and $700 million figures were plausible, but added that the real tally could well be even more than $700 million.
New Zealand First is determined to make sure New Zealand businesses can compete on a level playing field, by requiring all multinationals to pay their fair share of tax in New Zealand on the money they earn here from New Zealand customers. Whether it's $300 million, $700 million, or $1-10 billion.
New Zealand First is about fairness, for everyone – foreign and domestic – who does business here.