New Zealand could soon follow the international community to crack down on excessive tax avoidance carried out by multinational companies.
In a radio interview on February 14th the Minister of revenue of New Zealand Peter Dunne the country needs to take a balanced approach to the taxation of multinational firms in order to continue attracting foreign investment but without excessively easing their tax requirements in New Zealand.
The Minister’s comments come a day after the release of a new report by the organization of Economic Cooperation and Development, which called on governments worldwide to work together and update their tax systems to match modern business practices which have often allowed multinational companies to shift their profits to low tax jurisdictions.
Peter Dunne said that so far New Zealand has consistently taken a balanced approach to the taxation of multinational firms, and the government will continue to maintain a position of welcoming foreign investment while balancing their obligation to pay a fair share of taxes.
Explaining the government’s position further, the Minister said “If we get a fair regime then everyone will collect more, but if we get a system that is somewhat convoluted or somewhat uneven then the abuses that we fear are occurring at the moment will simply intensify. That’s why global action is what is going to resolve this problem.“
Photo by Tertiary Education Union (NZTEU)