Tax authorities are under pressure to work more closely together to crack down on tax avoidance, focusing on some of the world’s largest brands.
International fast-food chains such as Subway, McDonalds, Starbucks and Burger King avoid tax in the US and also in other jurisdictions, giving them a price advantage over domestic competition.
Authorities in Germany and Britain intend to push the G20 nations into an international agreement to make multinationals pay a “fair” amount of tax.
Google, Amazon, Apple, Cisco, Microsoft, PepsiCo and Pfizer are also in their sights.
In today’s print edition of the National Business Review, columnist Neville Bennett says the developments are worth attention by New Zealand authorities.
“Governments are in a dilemma: tighten up the laws and risk capital flight.
“The plight is real as many countries make tempting offers to attract new business because even if revenue promises turn to custard, which is often the case, capital investment at least increases employment and jobs."
Read more about the challenges of the avoidance scheme and boycott movements in Mr Bennett’s Economically Speaking column.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MARKET CLOSE: NZ stocks slip as Manchester concert attack drags on investor sentiment, Comvita drops
- Series: Business leaders’ Budget 2017 wish lists – Andy Hamilton
- Ebos to buy Australia's HPS for $A154m, expanding pharmacy footprint
- Dotcom's Seth Rich claim earns him a chance to appear on Sean Hannity's show
- While you were sleeping: Trump budget relief
Most listened to
- Business leaders on Budget 2017: One of Andy Hamilton’s ‘very contentious’ Budget wishes is for greater regulation of ‘pockets of our economy’
- Serko’s Darrin Grafton says the company can use its SME platform to expand globally
- Trump travels overseas selling jobs as North Korea continues to lash out, on Trump’s Beltway with Nathan Smith
- Nick Shewring says co-working attracts "awesome people doing cool things"
- NBR Radio: best of the week ended May 19, with Grant Walker