“Paying Their Fair Share” – Build The Nation

Build The Nation’s Richard McIntosh today called for politicians to tackle corporate profit-shifting to fund new national assets.

“Shane Jones’ recent call to review Crown minerals royalties misses the point.” said Mr McIntosh. “The real issue for New Zealand is big firms like Shane’s favourite mining and drilling companies avoiding hundreds of millions in tax payments by using various ruses to shift profits offshore tax-free. The minerals royalties, paid on revenue after tax-free profits have already been exported, are effectively reduced to a small percentage of a small percentage. So bumping them up is obviously good, but in the same way a fart is good, and with about as much effect.”

An obvious way to increase revenue from royalties payments would be to compel big multinationals mining and drilling companies to declare their whole income in New Zealand, and charge royalties on that income. But instead, politicians like Shane Jones allow New Zealand’s tax system to sit by while mining and drilling profits flow offshore instead of funding new national infrastructure for New Zealand.

“Australia’s Diverted Profits Tax addresses this issue.” said Richard McIntosh. “Let’s do the same here and bring in millions more in funding to build new national capacity. I’m sure Shane knows all about this but he’d rather keep his mining and drilling mates happy by tinkering with the royalties payments instead. And that’s failing New Zealand because the needs of the nation need to be served by big corporates not the other way round but no doubt he’ll find a way to disagree with that too.”

Build The Nation’s message is summed up by Australian Federal Tax Commissioner Chris Jordan statement from 2016: “My message to companies operating in Australia is clear – you must pay your fair share of tax on the profits you earn here.” It’s time we did the same in New Zealand, too.

“New Zealand’s lands and waters are the right of all citizens.” continued Mr McIntosh.

“New Zealanders must not be locked out of the benefits they provide. The activities of locally-based multinationals, be they fishing, mining, forestry or tech firms, must serve New Zealand’s interests by paying their fair share and not leaving the nation with the cost.”