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The Digital Services Tax with Rod Oram: February 19, 2019

The Digital Service Tax with Rod Oram: February 19, 2019

The Digital Services Tax with Rod Oram: February 19, 2019 The Digital Services Tax with Rod Oram: February 19, 2019, 9.59 MB
Tuesday, February 19, 2019

Governments all over the world are paying more and more attention to the financial activities of digital giants such as Google, Facebook and Uber. And New Zealand isn’t being left out of the picture - our government has just announced plans to impose a new digital services tax on multinational corporations operating in New Zealand. Finance Minister Grant Robertson sez highly digitalised companies currently earn a significant income from New Zealand consumers without being liable for income tax. He adds the current tax rules also provide a competitive advantage to foreign companies in the digital services field compared to local companies offering similar online services. So will this proposed digital tax affect the operating activities of these online global giants in New Zealand? Olivia Holdsworth spoke to economic and political journalist Rod Oram about the new tax. Olivia also asked him about his thoughts on the upcoming tax working group report and specifically the capital gains tax which would see profits from the sale of assets and investments such as rental properties and shares being taxed at people's marginal income tax rate. Olivia began by asking how the digital services tax will affect multinational corporations.