Message To Apple: Stop This Tax Dodging Corporate Rort – Bite On That

New Zealand First is calling for better rules for government purchases given Apple, which fails to pay any tax here, has been the dominant supplier of mobile phones.

“Why would a government spend taxpayers’ money with a foreign corporation which manipulates the system so it does not pay a fair share of tax in New Zealand,” says New Zealand First Leader and Northland MP Rt Hon Winston Peters.

 “These companies reduce what tax they owe in New Zealand through complex ‘related party finance transactions.’   Why would the New Zealand taxpayer buy off a company that is prepared to milk this country and give nothing back in return.

 “Why do some global corporates pay tax on New Zealand earnings but Apple doesn’t?  Every year government departments will buy well over a thousand Apple devices -  1,381 in 2014/15 alone - and this doesn’t include District Health Boards or other agencies.

 “The way some Ministers talk up Apple you’d think they were on commission.

 “And it’s not just Apple because FujiXerox has been favoured by this government and also does a Robin Hood in reverse - it takes from the poor Kiwi taxpayer to give to its rich multinational paymaster.

 “Government procurement rules need to change after almost nine years of National doing nothing, and claiming they were in discussions with the OECD,” says Mr Peters.

 

From Official Information Act reply:

SOME INTERESTING GOVERNMENT ICT HIGHLIGHTS (JULY 2014 to JUNE 2015)

 

Phones purchased by government departments:

  • Government departments purchased 1,249 mobile phones (not counting those which are leased) comprising 582 iPhones, 353 Samsung’s, 184 Nokia’s and 84 Blackberry’s.  The balance were Sony, Huawei, HTC, Telecom and “other.”

  • A further 256 cellular connected iPads were purchased separate to those below but MBIE is yet to provide per-unit purchase prices or those for the phones.

 

Computers purchased by government departments (GST inclusive prices):

  • Desktops: 6,461 at an average price of $984.25.  Highest average: Crown Law ($3,959.45 for 1). Lowest average: Police ($868.43 for 996).

  • Ultrabooks: 3,022 at an average price of $1,536.50.  Highest average: MoH ($2,228.92 for 72). Lowest average: Police ($1,185.97 for 307).

  • Laptops: 1,477 at an average price of $1,616.54.  Highest average: DoC ($5,924.80 for 1). Lowest average: NZDF ($959.30 for 133).

  • Apple Computers: 15 at an average price of $2,268.26. Highest average: LINZ ($3,309.70 for 1).  Lowest average: DIA ($1,419.10 for 1).

  • Tablets: 711 at an average price of $1,467.12.  Highest average: NZQA ($2,325.65 for 40). Lowest average: Corrections ($564.22 for 35).

  • iPads: 543 at an average price of $874.89.  Highest average: Crown Law ($1,177.37 for 5). Lowest average: ERO ($492.51 for 45).