Writing in the NZ Herald, Matt Nippert has exposed lies that demolish National’s economic policies.
A major Herald investigation has found the 20 multinational companies most aggressive in shifting profits out of New Zealand overall paid virtually no income tax, despite recording nearly $10 billion in annual sales to Kiwi consumers.”
Government Lie #1: Foreign investment is good for NZ.
The truth: It’s destroying our local businesses.
NZ retailers cannot fairly compete with a tax haven retailers if locals pay 28% tax and the multinationals pay little or nothing.
Foreign tax haven companies (investors) are destroying NZ businesses. They are also stealing from the tax paying public.
Government Lie #2: We negotiated well in the TPPA negotiations.
The truth: We were a pushover.
This government made trade concessions to two of the biggest tax avoiders, pharmaceuticals and IT. The government could have said, “When you stop shifting profits out of NZ and pay the taxes you owe us, only then will we discuss extensions of your patents and copyrights.” Instead the government gave concessions to the tax avoiders and had the gall to call it a success.
Disastrous negotiating, Mr. Key. You had the cards and you didn’t play them.
Government Lie #3: The IRD’s motto is “It’s our job to be fair.”
The truth: Foreigners get tax breaks IRD would never dream of giving you or me.
The IRD lets drug companies set their own level of tax! Several drug companies said they had agreements with Inland Revenue on the level of profits they should be reporting. Of course if the IRD pushes too hard, they can go to court where the drug companies are holding all the cards.
This IRD policy is not fair.