pn624. NZ losing $577m a year to 'global tax abuses', international study estimates

 New Zealand is losing US$401 million (NZ$577 million) a year through global tax evasion, much of it through profit-shifting by multinationals, an international lobby group has estimated.

The figure is included in a report published by the Tax Justice Network which estimated that “international tax abuse” by companies and wealthy individuals is costing countries globally US$427b.

The report suggests multinational tax avoidance is a comparatively small problem in New Zealand compared to overseas, with US$175m lost here due to overseas tax evasion by businesses.

It estimated total tax losses due to “global abuses” at 0.6 per cent of the country’s tax take, versus 5.35 per cent in the UK, 2.5 per cent in the United States and 1.1 per cent in Australia.

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