NZ to crack down on UK tax defaulters

The New Zealand government has all but confirmed the implementation of tax obligations on multinational companies.

 
 

finance minister Steven Joyce

The changes will effectively allow Inland Revenue to investigate uncooperative companies – and prevent multinational firms from moving profits overseas, to the United Kingdom and elsewhere.

Tax avoidance currently costs New Zealand approximately $300 million per annum.

They include making it easier for Inland Revenue to investigate uncooperative companies and stopping
said the changes would result in about $200m a year in additional tax being collected.

“While most multinational companies follow the rules there are some that attempt to minimise or eliminate their New Zealand tax obligations. The proposals target these multinationals,” Radio NZ quoted finance minister Steven Joyce as saying.

Joyce looked forward to $200m a year in additional tax being collected.

New Zealand, however will not follow Australia and the UK’s suit in introducing a diverted profit tax, which would penalise unsupportive and defaulting companies.

The changes will be included in a tax bill toward the end of the year – and be implemented in July 2018.

 
 

 

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