Base Erosion and Profit Shifting (BEPS)

Shifting of profits offshore by multinational companies to avoid paying tax.
This happens even when the real business activity—workers, customers, sales—is happening here in Aotearoa.
BEPS reduces tax revenue that the government can use to fund running our country. It also makes the tax system unfair—ordinary people can’t shift their wages to offshore tax havens.

Example: The NZ branch of a company might buy components from a foreign branch of the same company at a high price. This allows them to report low profits in Aotearoa and pay less tax here.