The New Zealand branch of Viagra-making drug giant Pfizer shipped $22.5 million in ‘return of capital’ payments to its Netherlands-based parent last year – at the same time it was paid hundreds of thousands of dollars by Inland Revenue in income tax refunds.
The stark figures have sparked calls from the Green Party for the Government to follow the lead of Australia who are widely tipped to introduce at their budget tonight a ‘Google tax’ aimed at clawing back billions in diverted profits.
Financial reports filed with the Companies Office by the drug company’s local subsidiary Pfizer New Zealand show in the year to 30 November 2015 their local branch made a $22.5m ‘return of capital’ payment to its Netherlands-based holding company.
The year earlier this parent company Pfizer Global Holdings B.V. was also paid a $30m dividend from its New Zealand subsidiary.
While the company recorded provisions for income tax for this two-year period of $1.4m – according to cashflow statements the company only paid Inland Revenue a net $59,000 in income tax.
A spokesman for Pfizer employed out of its Australian office declined the opportunity to comment on the $52.5m in payments to the Netherlands or their relatively low tax bills in New Zealand.
(ed:..and what will john key do about this current/ongoing gouging of the new zealand public by rapacious international drug companies/corporates..?..
..probably absolutely nothing..eh..?..
..key/this government is trapped into inaction by the fact they are so owned by vested-interests..)