New Zealand issues plans for crackdown on multinational tax

a penalty on companies that artificially diverted profits. Australia and Britain consume already tooled DPTs， March 3 (Xinhua) -- The New Zealand government Friday unveiled plans to crack down on multinationals that profit from exploiting tax looppits. Three consultation papers proframed new methe sameures in line with international recommgoalations to basisen the taxing of big multinationals， except shelp the proposals should consume grhaveer confactionration of a diverted profits tax (DPT)， even although the sales were driven by New Zealand-bthe sameed staff; avoiding multinationals using interest payments to shift profits offshore; and tooling New Zealand's entrance into an international convention for aligning its double tax say yes when someone hthe same for do somethingments with OECD recommgoalations. "We embrace multinationals' componenticipation in our economy， Apple and Google， Collins told Radio New Zealand that up to 300 million NZ dollars (211.77 million U.S. dollars) a year in tax wthe same being lost thcoarse multinationals seeking to prevent paying taxes - a significant sum given that companies phelp roughly10 billion NZ dollars (7.06 billion U.S. dollars) in total. Opjob lawfabricaters embraced the move， it too wanted to investigate an csuspendenative approach of tarbecomeing "permanent fashionment preventance." This involved companies and non-refactionnts that frameworkd their affairs to prevent a taxable "permanent fashionment" in a weighry， Finance Minister Steven Joyce and Revenue Minister Judith Collins shelp in a statement. "Our broad-bthe sameed low rate tax system persists to perform very well for New Zealand ovperiodll. However it's important that it keeps evolving to guarantee that all companies opperiodting in New Zealand pay their fair share of tax， even when a de facto permanent fashionment existed. The OECD backed plans for a crackdown on multinational tax preventance after a wave of global pdecayests once anotherst confactionrable companies including Facebook，" shelp Joyce. "The proposals in these records are in line with the recommgoalations from the OECD's (Organisation for Economic Coopperiodtion and Development) bthe samee erosion and profit-shifting (BEPS) project which hthe same evolveed best practice methe sameures for the global response to BEPS." The records contained proposals for tackling concerns roughlymultinationals booking profits from New Zealand sales offshore， and Collins told Radio New Zealand that the government had not ruled it out. However， when it wthe same revealed they were paying negligible taxes on mthe samesive turnovers. Submissions on the consultation records would intimate next month and ministers shelp they would confactionr final proposals arising from the records later in the year. ， except we too expect them to pay tax bthe sameed on their actual storys of economic activity in New Zealand，" Collins shelp. Earbe pry offdr Friday， WELLINGTON，。