The New Zealand Tax Team have recently made a submission to the OECD Secretariat on their proposed unified approach to pillar one issues. Pillar one issues consider the reallocation of taxing rights required to keep up with the modern business environment, where businesses no longer need to have a phsyical presence within a market jurisdiction to reach consumers and generate revenue.
While there are a number of shared concerns between New Zealand and Australia, our comments to the OECD are limited to the New Zealand perspective.
Our submission focuses on the maintaining the key principles of simplicity, efficiency and ease of compliance. For New Zealand in particular we raise concerns regarding the possible compliance burden, setting of appropriate de minimis thresholds and the exclusion and appropriate definition of commodities.