The Inland Revenue in New Zealand announced the third reading of the Taxation (Neutralising Base Erosion and Profit Shifting) Bill had been passed in Parliament, which contains measures to prevent multinational companies from avoiding tax by shifting profits out of New Zealand.
The Bill it takes effect from 1 July and will considerably improve the integrity of the tax system. This transpose of BEPS legislation is a first step, according to Revenue Minister Stuart Nash. “These changes enjoy the unanimous support of Parliament and are possible thanks to the work of MPs from all political parties, as well as valuable advice from tax professionals and useful submissions from members of the public,” Mr Nash said. Inland Revenue officials have been asked to work closely with international agencies like the OECD and G20 to consider whether further measures are required.
The changes will prevent multinationals from using BEPS strategies, including:
Sources: Inland Revenue – New Zealand
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