Multinational tax boost set to double under new rules

The Government has doubled to $200 million the extra tax it plans to get from multi-nationals next year after finalising measures to address base erosion and profit shifting, as announced yesterday. The revenue, in line with Labour’s budget forecast, would come from changes including stopping foreign parent companies charging local subsidiaries high interest rates to reduce taxable profits, and moves to ensure they are taxed in line with the economic substance of their activities.