Apple pay no tax in NZ, on $4.2 billion of sales over the last decade. $0.
They have several dozen employees here, to go with their lots of sales, but what little tax they do pay ($34 million over the decade – less than 1% of turnover), they pay to Australia in a parent company. Intriguingly they pay 30% tax in Australia rather than the 28% they would here – so much for our marginally lower rates attracting business!
Judith is too busy to talk to the Herald or the Guardian, but does have something on the table that, if not watered down, might make some difference against internet firms. But maybe not Apple, we’re not sure.
But Australia has brought in a much toothier law, and claim the Google and Facebook are now paying full tax. Their Multinational Anti-Avoidance Law and profit-diverting tax is trying to make sure the big companies pay their share.
I look forward to Judith’s new law hitting the books, but can we do better? That’s better health and education for us if Google/Facebook/Apple etc actually pay what they should.
And as we look at tax rates and ‘paying what they should’, there’s an intriguing poll from Britain where it turns out the public don’t want tax cuts – in fact 77% would back a return of the 50% top tax rate (on those earning >150,000). Corporate tax there’s strong support for it to go from the 20 to 25% – the UK Conservative government are planning on cutting it to 17%. Even increasing all rates of income tax by 1% only caused and even split, although increasing VAT (aka GST here) was very unpopular.
And that was without the framing of “to fund better health / education etc”, just a bald tax rise – tax is always more palatable when you’re told you’ll get something for it!
Might be worth a poll here? How much do we want Bill’s “sugar shot”?