Government dragging its heels on Apple tax: Labour
Revelations that electronics giant Apple is paying zero tax in New Zealand is just the tip of the iceberg, says Labour.
NZME reported that while Apple had apparently paid $37 million in tax to New Zealand IRD over in the last decade, that money had in fact been collected for the Australian Tax Office. Apple sales in New Zealand over that period were $4.2 billion, according to the newspaper.
The arrangement is legitimate under New Zealand law.
Labour leader Andrew Little said there was nothing new in the latest revelations, which was why the Government should have acted long before now. It had been asleep at the wheel while around the rest of the world countries had tightened their laws, including Australia.
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Labour would implement Australian-style laws, Little said.
Labour's revenue spokesman Michael Woods said Kiwi workers paying their fair share of tax would be outraged.
"This is the tip of the iceberg.....Cabinet was officially warned about the huge scale of multi-national tax avoidance five years ago."
Revenue Minister Judith Collins recently announced measures to tackle the "minority" of international companies exploiting the rules to avoid paying tax. Those measures would ensure multinationals would be taxable on profits from New Zealand sales when they have people working for them in this country.