- Date published:
9:30 am, July 23rd, 2017 - 14 comments
Categories: accountability, capitalism, class war, Judith Collins, national, tax - Tags: BEPS, multinational corporations, oecd, tax, tax evasion
If you’re an ordinary Kiwi the government will pursue you to the ends of the earth for every last tax dollar. If you’re a big wealthy multinational corporation – meh.
Tax avoidance by multinationals is better dealt with by an international treaty than harsher measures brought in by Australia and the United Kingdom, Revenue Minister Judith Collins says.
In an interview with TV3’s The Nation, the minister said she had not ruled out the idea of diverted profit tax, which comes into effect in Australia this month for global companies.
But Collins said the 40 per cent tax penalty Australia was using was “very draconian”.
What’s Australia doesn’t seem to think so. A fine is considerably less “draconian” than what the law allows for domestic tax evasion – why the special treatment for multinationals?
”That is a pretty harsh measure which might sound great, but even Australia is saying they’re expecting $100m and the size of their economy [is] five or six times our size.
Assuming this estimate is honest and correct – 20 million isn’t worth the bother of collecting? Since when?
“We believe we can get pretty much the same result or even better working with the the OECD.” The Government’s preference is to be part of an OECD’s treaty on BEPS (base erosion and profit shifting), which aims to stop loopholes letting companies to shift profits to low or no-tax locations.
That excuse is just waffle. The BEPS is all well and good, and NZ has recently joined, fine. But Australia and the UK are also in BEPS, they don’t consider it enough, They have additional measures as noted above. So why no additional measures in NZ? Why won’t the Nats follow Australia and UK in a crackdown on multinational tax avoidance?