HIGH COMPANY TAX RATE DETERRING CORPORATE TAXPAYERS
18 MARCH 2016
FOR IMMEDIATE RELEASE
Responding to today’s New Zealand Herald report into tax minimization strategies by multinational companies operating in New Zealand, Taxpayers’ Union Executive Director, Jordan Williams, says:
"Today's revelations by the NZ Herald show why having such a high company tax rate creates an incentive for companies to shift profits out of New Zealand. Only yesterday the UK Government announced a corporate tax cut to 17%. That compares to New Zealand's rate some 11 points higher."
"Many will be surprised with the low level of company tax some multinationals pay in NZ. The problem is usually the complex transfer pricing laws rather than companies breaking the law. No one can criticise a business for legally minimising its tax liability, but it does demonstrate why New Zealand needs a simpler, lower tax regime to boost employment, competitiveness and make doing business here more attractive."
NOTES TO EDITORS:
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The New Zealand Taxpayers’ Union is an independent and membership-driven activist group, dedicated to being the voice for Kiwi taxpayers in the corridors of power.
The Taxpayers' Union operates a 24 hour media line for comment on taxpayer issues. Representatives are available on (04) 282 0302.
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