tag:blogger.com,1999:blog-38893560.post8636841058366535762..comments2023-10-08T12:11:52.993+13:00Comments on New Zealand Conservative: Corporate WelfareLucia Mariahttp://www.blogger.com/profile/10485990994973953860noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-38893560.post-58825555499491634192012-01-03T11:11:11.578+13:002012-01-03T11:11:11.578+13:00Thanks. I'm greedy, wanting the data all nice...Thanks. I'm greedy, wanting the data all nicely collated. Might have to pick a few companies and do some work.<br /><br />I was on the Charity Commission website the other day and they offer complete data export of all registered charities, with a wealth of information, as part of the open government initiatives. Fantastic, and well done the Charity Commission given it's small size and limited resources.ZenTigerhttps://www.blogger.com/profile/07888629207437612884noreply@blogger.comtag:blogger.com,1999:blog-38893560.post-86815550141192785272012-01-02T20:50:17.452+13:002012-01-02T20:50:17.452+13:00Hi Zen,
on an individual company level, it may in...Hi Zen,<br /><br />on an individual company level, it may interest you that <br /><br />http://http:www.business.govt.nz/companies<br /><br />lists each company and its financial returns each year. That way you can get an idea of some of what you're after. But it doesn't help when it comes to collating it altogether into industry sectors, or by revenue size.Matthewhttps://www.blogger.com/profile/11861786926205491818noreply@blogger.comtag:blogger.com,1999:blog-38893560.post-81708182617226308722012-01-02T12:13:44.702+13:002012-01-02T12:13:44.702+13:00Hi LRO.
You think I was born yesterday? :-)
Yeah...Hi LRO.<br /><br />You think I was born yesterday? :-)<br /><br />Yeah, OK, you can add charitable and religious exemptions to the list of "Corporate Welfare" provisions - it's all a fair part of the discussion, although another discussion on government largesse can continue this topic too.<br /><br />I would have thought PAYE does have relevance though, as I'm interested to see how places like banks, who might pipe all their corporate income profits overseas still end up paying salaries and therefore taxes to their NZ staff.<br /><br />For businesses reliant on the service industry, we'd expect to see a big push to keep wages low, and for businesses that need fewer people, we'd possibly find other forms of tax exploitation to minimise their contributions to the economy.<br /><br />And then there are places like Amazon, where I am happy to buy a product direct from overseas (like an electronic book) because few other places have them, but the consequence is I escape even GST.ZenTigerhttps://www.blogger.com/profile/07888629207437612884noreply@blogger.comtag:blogger.com,1999:blog-38893560.post-19163210984853903902012-01-02T11:43:26.186+13:002012-01-02T11:43:26.186+13:00Hi Zen,
Not sure about the relevance of some of y...Hi Zen,<br /><br />Not sure about the relevance of some of your Q's. EG, PAYE has no relevance unless you are alleging fraud, PAYE will vary wildly between companies of similar size unless they have the same wage structure.<br /><br />Another area of corporate welfare to examine is council rates.<br /><br />As an example, my home is valued at $340,000.oo and I pay $2389.15 in rates.<br /><br />Up the road, a property is valued at $1,040,000 and pays $0.00 rates.<br /><br />Why?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-38893560.post-17878041952916646422012-01-02T10:14:08.384+13:002012-01-02T10:14:08.384+13:00Thanks Matthew, this is the kind of story I want t...Thanks Matthew, this is the kind of story I want to catalogue. I think my above list of key financial stats might quickly highlight these kind of profit moving techniques.<br /><br />Large IT companies are also implicated in this kind of practice too.<br /><br />One additional dimension to this is to compare media treatment of its advertisers to the media treatment of other organisations that don't spend much in the way of advertising.ZenTigerhttps://www.blogger.com/profile/07888629207437612884noreply@blogger.comtag:blogger.com,1999:blog-38893560.post-24296003421650349782012-01-02T10:10:27.849+13:002012-01-02T10:10:27.849+13:00Just in case you weren't aware...
I don't...Just in case you weren't aware...<br /><br />I don't have any figures to hand, but I think you'll find one practice most foreign multinationals engage in. When they sell their product in NZ, the basic idea is to sell it for more than it costs to make. However, rather than import it into NZ at the cost of the good and sell it with a mark up (and therefore make a profit) the company will "import" the product at at same dollar value as what it will sell to the customer. <br /><br />An example: Company A has two wholly owned subsidiaries: one in New Zealand and one in Seychelles. Company A sells a product to Customer B in New Zealand at an agreed price of $100. Company A Seychelles Ltd produces the product at a cost of $20 and sells it to Company A New Zealand Ltd for $100. Company A New Zealand Ltd sells the product to Customer B for $100. The Seychelles Company tax rate is 0% and the New Zealand tax rate is 28%.<br /><br />Obviously the idea is to minimise, or maybe the company will argue, simplify, its tax accounting.Matthewhttps://www.blogger.com/profile/11861786926205491818noreply@blogger.com