WELLINGTON Cheap Ryan Suter Jersey , July 3 (Xinhua) -- The New Zealand government will be pushing for international efforts to fight tax avoidance by large multinational companies after the OECD (Organization for Economic Co-operation and Development) group of developed nations made the first moves to close down loopholes last week, Revenue Minister Todd McClay said Thursday.
The seven recommendations from the OECD's Committee of Fiscal Affairs showed global commitment to a solution to stop base erosion and profit shifting (BEPS), the practice of multinational firms of reporting overseas incomes in low tax jurisdictions, McClay said in a statement.
The BEPS Action Plan would be presented to finance ministers at a meeting of the G20 in September and was on track for delivering the first seven recommendations this year, he said.
"There is no simple solution to BEPS. The problem is that current international tax rules cannot effectively deal with highly mobile multinational operations working across different jurisdictions, so BEPS is only going to be solved through international cooperation Cheap Luke Kunin Jersey ," said McClay.
"New Zealand's domestic tax laws are very strong in this area and include thin capitalization rules, taxation of passive income of controlled foreign companies and a series of anti-arbitrage rules. These rules help to limit the ability of companies to shelter income."
New Zealand would also be attending the G20 summit in Brisbane later this year where it would be involved with discussions around the tax implications of BEPS and "the rapidly digitizing world economy," he said.
"Our representatives at the OECD and G20 will continue to be deeply involved because New Zealand is committed to developing and being part of a strong global response," McClay said.
Last month, McClay announced that New Zealand tax officials were helping the OECD to deliver the first part of the plan, which includes proposals on the interpretation of tax treaties.
The announcement came the same day it was reported that Google Inc. Cheap Marcus Foligno Jersey , which made 15.42 billion U.S. dollars globally in the quarter ending March, reported an after-tax loss of more than 60, 000 NZ dollars (52,599 U.S. dollars) in New Zealand last year on revenues of 10.13 million NZ dollars (8.88 million U.S. dollars).
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