Another financially illiterate beat-up from Robbo

 

- TVNZ

– TVNZ

Labour’s Grant Robertson says Uber’s minuscule tax payment in New Zealand is a sign it’s time the Government cracked down on multinational tax avoidance.

He says it’s a joke Uber paid just $9000 tax despite earning $1 million in revenue in New Zealand, and if it wants to operate here it should pay what others pay.

“That’s just not fair. I mean ordinary working people pay their taxes here every week. So should companies here, and the Government should crack down on those who don’t,” he says.

 

“It’s everyday New Zealanders that are losing out, because the costs of goods and services provided by the Government will end up being carried by hard-working taxpayers rather than by the big multinationals.

“New Zealand can’t sit on its hands and wait for multinational tax avoidance to be dealt with at the global level.”

Uber, the app-driven ride-sharing service, is one of the fastest growing companies in the country.

Accounts filed with the Companies Office show Uber’s New Zealand business used a complicated structure of international companies to reduce its New Zealand tax bill.

$9,000 tax paid from $1,000,000 revenue sounds bad. But, last time I looked, nobody pays tax on revenue, only on net profit.

That doesn’t stop the Media party trumpeting these numbers about gleefully as if it actually means something.

To put a second boot in, they allude to some complicated structure to reduce its New Zealand tax bill without any evidence to back it up.

Uber provides self-employment opportunities, it is providing competition, and it is generating GST and income tax taken from the drivers.

The worst crime, however, is a finance minister wannabe going to press claiming $9,000 tax on revenue and the media don’t even know enough to laugh at him and tell him to go read the Wikipedia page on basic accounting.

 

– Newshub


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