Government set to clamp down on multinational companies avoiding paying tax in New Zealand

By Sam Thompson

Revenue Minister Judith Collins is expected to unveil measures tomorrow aimed at reining in large global companies and preventing them from manipulating the tax system for their benefit. Photo / Doug Sherring
Revenue Minister Judith Collins is expected to unveil measures tomorrow aimed at reining in large global companies and preventing them from manipulating the tax system for their benefit. Photo / Doug Sherring

The Government's set to clamp down on multinational companies avoiding paying tax here.

Revenue Minister Judith Collins is expected to unveil measures tomorrow aimed at reining in large global companies and preventing them from manipulating the tax system for their benefit.

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PWC tax expert Geoff Nightingale told Newstalk ZB's Larry Williams there is speculation a diverted profit tax could be among the measures.

"Diverted profit tax has been a sort of unilateral measure that first the UK and then recently Australia have implemented.

"I guess the question will be, does New Zealand go down that path, or do we follow the more the more orthodox OECD path and implement some of the things that they are recommending?"

Nightingale said he is not a fan of the diverted profit tax.

"It's a new set of measures, that are trying to solve problems around inbound multinational investment in New Zealand.

"I think generally those problems can be solved, to the extent they exist, by making sure we have the best current laws."

- Newstalk ZB

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