Facebook Must Pay More Tax, Or be Banned

January 29, 2014 New Zealand Taxation

FacebookFacebook needs to pay more tax, or face the possibility of a ban from New Zealand, according to a Labour Party spokesperson.

In a television interview on January 29th the revenue spokesperson for the Labour Party David Clark indicated that the government should reserve the power to ban access to the social media website Facebook, if the global social network does not pay more tax on earnings derived in New Zealand.

According to David Clark, the ability to ban a website such as Facebook should be an ability reserved and held by the government as a “credible threat” in cases of non-compliance.

The Labour Party has previously criticized Facebook several times, claiming that the global giant does not pay enough taxes in New Zealand, pointing out that in recent years the business has raised revenues of NZD 790 000 in New Zealand, but only paid NZD 28 000 in income taxes.

Ministers of Parliament from the National Party have already discredited the idea of a ban, with the Finance Minister Bill English going so far as to call the concept “completely ridiculous”.

By: MoneyBlogNewz