The government has announced that it is looking into the tax paid by big companies.
This includes companies such as Facebook, Google and other multinational companies operating in New Zealand.
The Government has released proposed strategies for getting big companies to pay their fair share of tax.
Revenue Minister Judith Collins calls the proposals “principled and yet pragmatic”, saying they will have “significant teeth” without turning business away.
The precise amount New Zealand is losing to multinational tax avoidance isn’t clear. Some people estimates it could be as high as $10 billion a year.
Last year Facebook paid $43,000 in tax – about the same as a single doctor or lawyer would – despite revenue of $1.2 million. Google paid $361,542 despite $14.9 million of revenue, while Apple paid $9 million despite revenue of $732 million.
