New Zealand is losing millions in tax as a result of multinational companies shifting their profits offshore, says a new report launched today by the Tax Justice Network (TJN), an international non-profit organisation
Its report, ‘State of Tax Justice 2023,’ demonstrates with extensive and updated data, that the current global tax system is unjust. Its rules and practices are unfair and enable multinational businesses to make unfair profits.
The report has been welcomed by Tax Justice Aotearoa, which is affiliated to the global Tax Justice Network.
“The report is a timely reminder that all countries, including Aotearoa New Zealand, are deprived of much needed tax revenue by the current international tax settings,” says Glenn Barclay, Chair of Tax Justice Aotearoa.
“USD $1,557 million generated in NZ by multinational companies is shifted off to other countries. We lost USD $167.6 million in tax revenue that could have been spent on the things we need such as education, health, and infrastructure, as well as responding to climate generated environmental disasters such as cyclone Gabrielle.”
The TJN report also demonstrates that the losses incurred by lower income countries are proportionately much greater than for higher income countries. It calls for an end to global tax abuse that deprives countries of tax revenue.
Greater transparency is needed to shed light on the activities and behaviour of multi-national companies and rich individuals who hide their money offshore in tax havens.
TJN calls for a UN tax convention as a basis for an independent body to set standards and rules for global tax policy and law.
“Tax Justice Aotearoa supports these recommendations and calls on the New Zealand government to support the proposal for a UN tax convention, which is due to be voted on in December,” says Glenn Barclay. “It is time for the government, whoever wins the election, to take a stand on international tax abuse.”
