New Zealand will be operating with OECD only

05.12.2012

Due to numerous discussions of the issue of taxation of multinational companies (Google, Facebook, Amazon, etc.), the Minister of Finance of New Zealand has decided to clarify the position of his Government.

The Minister said that the problem is global; its solution is not enough measures taken by individual states. To solve this problem, it is needed the efforts of all the OECD countries, which could take a fair tax system that takes into account the governments’ and businesses’ interests.

On the basis of: http://taxpolicy.ird.govt.nz/

Expert’s opinion

"Globalization affects all the areas of human life including issues of legal regulation of taxation in different countries.

Despite the wishes of everyone and everything to equalize, different natural conditions make the country compete and occupy a niche in the global economy.

The same happens with the laws that govern the existence of business tax incentives.

There are objective processes. They can not get around, no matter how hard you try. That was proved by example of multinational companies. What is particularly revealing: Google, Facebook, Amazon are companies that trade immaterial things, information.

New Zealand has a good income from such companies.

If the revenue of these companies is legitimate, then the question to their taxation can not occur at all.

And to prove it, New Zealand confirms his agreement to cooperate with all the structures by all means that confirm the positive reputation of this jurisdiction. This will not affect the operation of the New Zealand trusts and companies in the global tax planning in any case, in the foreseeable future. "

Yaroslav Lomakin ( Managing partner of “Honest&Bright” company.)