New Zealand to help tackle multinational tax avoidance

New Zealand tax officials will be offering solutions to the erosion of national tax bases by profit-shifting multinationals at a meeting of the Organisation for Economic Co-operation and Development (OECD) group of developed nations this week. Inland Revenue Department officials would be seeking international cooperation to combat the problem at the Paris talks on base erosion and profit shifting (BEPS), tactics used by multinationals to shift profits to low-tax jurisdictions, Revenue Minister Todd McClay said in a statement Monday. "My officials are contributing to discussions on the growth of the digital economy, its impact on tax bases, and possible solutions to combating the BEPS problem," said McClay. New Zealand's participation was highly valued, in part because of the strength and integrity of its domestic tax laws. "As New Zealand is becoming more and more attractive as a place to do business and invest in, it is critical that we continue to strengthen our tax rules to ensure overseas companies pay their fair share," said McClay. "Multilateral cooperation is the key to addressing these cross- border issues. Multinational base erosion and profit shifting requires a pragmatic international response; it is clear that it cannot be solved by individual countries working in isolation."