Labour slams Facebook NZ’s $14k tax bill

closeThis article could be out of date, as it was published 1 year 10 months 2 days ago.

Facebook New Zealand has come under fire after only paying $14,500 tax last year, making a mockery of tax loopholes for multinationals according to Labour.

The party’s revenue spokesperson David Clark believes the social media giant is exploiting Revenue Minister Peter Dunne’s refusal to close tax loopholes and believes action is needed to combat such tiny tax bills.

“The New Zealand arm of the world’s most used online social networking tool, Facebook, paid only $14,497 in tax last year,” Clark said.

“In 2010 its tax bill was a mere $5,238. For a company that has 2.2 million users in New Zealand and makes billions worldwide, that’s barely believable.

“It appears Facebook is using the ‘double Irish’ tax technique. That’s where it uses Irish Facebook, which pays just 12.5% tax, to determine revenue and expenses.

“This ensures the company can put most of its revenue through countries with low-tax systems.

“Peter Dunne calls that ‘legitimate tax avoidance’. I call it a rort.

“Australia is bringing in laws to clamp down on this sort of behaviour, as are the Europeans. Yet here the Government isn’t even considering it.

“Peter Dunne doesn’t realise that New Zealand is beginning to get a reputation as something of a see-no-evil tax haven.

“Recent reports from the Guardian newspaper and BBC Panorama put New Zealand in the company of the Channel Islands and Nevis. Not good company.

“It’s not just Facebook that funnels revenue through its low-tax Irish counterpart. Google New Zealand does it too. That company paid just $109,038 tax on $4,447,898 in revenue. That’s two per cent, way below our 28 per cent corporate rate.

“These companies should pay the right amount of tax here. That’s only fair. For Peter Dunne to wash his hands of the issue is simply not good enough.

“We must work with Australia to ensure this sort of tax avoidance is stamped out.”

Do you think multinational companies have an easy ride when it comes to tax in New Zealand? Tell us your thoughts below

Follow Us
on Google+
Sponsored

Review: Sony Xperia Z2

NetGuide Smartphones are all about compromise these days. Fitting a hi-res screen, camera and huge battery into increasingly lighter handsets isn’t easy, and usually, something has to give.   Read More →

Review: LifeTrak C410 Fitness tracker

NetGuide The C410 is a fitness tracker first and a watch second. Because of this it not only tells the time, but also tracks almost everything a fitness nut would need to know.
Amongst the many stats tracked are Steps. Calories are measured too as are distances covered. There’s a sleep tracking function, plus heart rate monitoring.   Read More →

Android App Review: Writing Prompts

NetGuide Writing Prompts is one of those obviously-named apps that gives you exactly what the name suggests and nothing more. If you want some help getting started with your creative writing, then the Writing Prompts app might be able to help.   Read More →