DEV-19-MIN-0110 – Minute: Options for taxing the digital economy

Date 8 May 2019
Reference DEV-19-MIN-0110
Document type Cabinet committee minute
Title Options for taxing the digital economy
Downloads PDF (144 KB)
DOCX (42 KB)

This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.


Options for Taxing the Digital Economy

Portfolios Finance / Revenue

On 8 May 2019, the Cabinet Economic Development Committee:

1 noted that on 18 February 2019, Cabinet:

1.1 noted that there is a problem with the current taxation of the digital economy, both in New Zealand and internationally;

1.2 noted that a number of countries, including Australia, are investigating or implement digital services taxes (DSTs);

1.3 agreed that New Zealand should continue to participate in the OECD discussions on the taxation of the digital economy, with a view to supporting a long-term solution (bearing in mind its effect on New Zealand exporters);

1.4 directed officials to draft a discussion document to get public feedback on the options for taxing the digital economy (being the international solution and the DST);

1.5 noted that the Minister of Finance and the Minister of Revenue, in consultation with the Prime Minister, will report back with a draft of the discussion document prior to its release;

[CAB-19-MIN-0041]

2 agreed to the release of the document Options for Taxing the Digital Economy: A Government Discussion Document (the discussion document), attached to the paper under DEV-19-SUB-0110, subject to any changes in accordance with paragraphs 3 and 4 below;

3 authorised the Minister of Finance and the Minister of Revenue to make minor editorial and technical changes to the discussion document prior to its release;

4 noted that if the OECD proposals change before the release date, the Minister of Finance and the Minister of Revenue will update the description of those proposals in the discussion document.

Janine Harvey
Committee Secretary


Hard-copy distribution: (see over)

Present:
Rt Hon Winston Peters
Hon Kelvin Davis
Hon Phil Twyford
Hon Dr Megan Woods (Chair)
Hon Chris Hipkins
Hon David Parker
Hon Stuart Nash
Hon Iain Lees-Galloway
Hon Jenny Salesa
Hon Damien O’Connor
Hon Shane Jones
Hon Kris Faafoi
Hon Willie Jackson
Hon Eugenie Sage

Officials present from:
Office of the Prime Minister
Officials Committee for DEV

Hard-copy distribution:
Minister of Finance
Minister of Revenue