Media Releases

Amazon’s prime tax deal: Luxembourg offered retailer massive unfair discount

October 5, 2017

Online retailer Amazon has received 250 million euros in illegal state aid from Luxembourg, the European Commission said today. This is the fifth high-profile decision on tax deals, like the one between the Irish government and Apple.

In response, Aurore Chardonnet, Oxfam EU policy advisor on inequality and tax, said:

“Governments are letting big business off the hook when it comes to paying the billions they owe in tax. This is unsustainable and unfair as taxes are required to fund public services like education and healthcare. When large companies, such as Amazon, don’t pay their fair share of tax, small businesses and citizens end up unjustly footing their bill.

“Some EU governments have secretive tax deals with multinationals and this needs to stop. Governments are meant to represent the interests of their citizens and not only those of corporations. It is also disappointing to see that the Irish government continues to delay collecting the billions in unpaid tax from Apple after their tax deal was exposed last year.

“Only tax transparency will allow citizens to hold decision-makers to account, expose companies’ potential wrong-doing and fix the tax system. In July, the European Parliament voted for rules for multinationals to automatically disclose where they generate their profits and where they pay their taxes. These should now swiftly be adopted.”

Notes to editors:

The European Commission launched its investigation into the tax schemes operated by Amazon in Luxembourg in October 2014. The company received significant tax reductions by the way of ‘tax rulings’ issued by Luxembourg authorities since 2003. The European Commission has also opened investigations into Luxembourg’s tax dealings with McDonald’s in December 2015, and with ENGIE in September 2016.
The decision on Amazon follows earlier Commission decisions on tax deals of by Ireland with Apple in September 2016 as well as the Netherlands with Starbucks and Luxembourg with Fiat in October 2015. In January 2016, the European Commission has also declared illegal selective tax advantages granted by Belgium under its “excess profit” tax scheme, which has benefitted at least 35 multinational companies.
According to the European Commission, tax rulings may involve state aid within the meaning of EU rules if they are used to provide selective advantages to a specific company or group of companies.
In December 2015, the EU adopted a directive aimed at improving the exchange of information on tax rulings given by member states to companies on advance cross-border tax rulings, as well as advance pricing arrangements. However, the public will not be allowed to access this information.
In July 2017, the European Parliament adopted legislation for so-called public country-by-country reporting, obliging companies to disclose information on profits made and taxes paid for each country they operate in. The Parliament and EU member states have now to agree on a final version of the legislation.
Oxfam America has published the report “Rigged Reform” in April, which exposes how the US’s 50 largest corporations relied on an opaque and secretive network of subsidiaries in tax havens to avoid paying their fair share of taxes.

We’re still fighting for a Zero Carbon New Zealand

October 4, 2017

This was far from being the ‘boring election’ many thought it was going to be – and almost two weeks after the last vote was cast, its result is still uncertain.

We knew Oxfam’s election story was also going to be far from boring when we led a coalition of 15 aid agencies to campaign for all political parties to commit New Zealand to legally binding pollution reduction targets.

All these agencies have witnessed the number of climate-related humanitarian disasters more than double since 1980. This means that climate change has the potential to wind back development progress made over the last 60 years, creating havoc in developed and developing countries alike. After many years working in long-term development solutions and responding to humanitarian disasters in over 90 countries, all of us agree that this is one of the biggest development challenges of the 21st century.

You Backed the Plan

From secular to faith-based agencies, from Dargaville to Dunedin, the agencies – representing hundreds of thousands of New Zealanders with a variety of political views, but who are all equally concerned about the many problems our children will face in the near future due to climate change – all knew it wouldn’t be easy to bring climate change to the top of the political agenda. But with your help, we did it.

During the months leading up to the election, more than 5,000 New Zealanders got behind our campaign Back the Plan – Back to Zero and demanded a real climate commitment from all political parties. This led to a huge success as we secured a commitment from Labour, Greens and NZ First on legislation to reduce New Zealand’s pollution. But our work is far from finished.

Whatever the final election result is, we will continue to fight for a fairer, more just New Zealand.

Climate change is happening now and is affecting us all – our Pacific neighbours, our communities, our businesses and people living in poverty. We will continue to work with the newly elected government and hold it to account as we advocate for a cross-party agreement that puts the future of our children first: a Zero Carbon Act.

As the Electoral Commission is still counting the 380,000 special votes remaining, whatever the result, we will continue to call for our MPs to legislate a Zero Carbon Act and make New Zealand carbon-neutral by 2050.

Watch this space.

Oxfam’s reaction to the new US tax plan

September 27, 2017

In response to the tax plan outline proposed jointly by President Trump and Congressional leaders, Paul O’Brien, Oxfam America’s Vice-President for Policy and Advocacy, made the following statement:

“The tax plan introduced today is a blueprint for increased inequality. There is no doubt that the biggest winners in our global economy are those at the top, and this proposal will skew that even further.

“Instead of the real reform the President promised on the campaign trail, this plan offers more tax cuts for the rich and budget cuts for the poor. While President Trump was elected on his promise to fix the rigged political and economic system, these proposals will only further rig the rules in favor of the rich and powerful while harming poor families in the US and in developing countries worldwide.

“Every year corporate tax dodging costs Americans approximately $135 billion. The same tricks, schemes, and offshore tax havens sap an estimated $100 billion from poor countries – revenue that should go towards building schools, bridges and hospitals. The plans released today do nothing to solve these problems.

“Worse yet, the ideas offered today perversely reward the very companies that dodge the most taxes. This plan will incentivize further use of offshore tax havens that harm America and poor countries alike. Huge tax cuts for the wealthy and big corporations will have to be paid for by cuts in anti-poverty programs at a time when need for global engagement and solutions to inequality is only growing. If anything the plans will incentivize companies to offshore more jobs and profits.

“The President and Congress should go back to the drawing board and start over with a plan that works with our allies around the world to stem tax haven abuse. Only through cooperation can we avoid a global race to the bottom where everyone but the richest will suffer.”

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Hundreds of thousands of Rohingyas without shelter & clean water

September 27, 2017

More than 70 per cent of the nearly 480,000 Rohingya refugees who have fled to Bangladesh are without adequate shelter and half have no safe drinking water, Oxfam warned today.

Heavy rains and floods in camps have left people facing extreme hardships, and have slowed down the building of emergency shelters, clean water tanks, and the delivery of aid.

Darren Brunk, Oxfam New Zealand’s humanitarian lead, said: “It is truly terrible to see the level of need. People are living in makeshift tents under heavy rains. Tens of thousands don’t have food or clean water. If they are very lucky they have some plastic sheeting to take shelter under – but most of the time families are huddled under sarongs. These people urgently need help.

“Most camps are flooded, including Katupalong and Balukhali where Oxfam works. For people forced to flee this is absolutely devastating – they have crossed one torrential river, just to be confronted by insecurity and pouring rain.

“Women and children are particularly vulnerable, sleeping under open skies, roadsides, and forest areas with little or no protection.”

A humanitarian flight carrying 15 tons of supplies left Oxfam’s warehouse in the UK on Friday. Materials include water pumps, material for construction of emergency latrines and water tanks. Two more humanitarian flights are planned with additional supplies.

Since August 25, nearly 480,000 Rohingya people have crossed over to Bangladesh’s South-Eastern districts resulting in a massive humanitarian crisis. Of these it is estimated that over 340,000 have inadequate shelter and about 240,000 have no clean water.

Oxfam’s response has reached nearly 100,000 people with clean drinking water, emergency toilets, water pumps and food rations. Oxfam is planning to help more than 200,000 people during the first phase of its response. Oxfam is also supporting the government and humanitarian partners to ensure camps newly established will meet the necessary humanitarian standards.

Due to the volatile and chaotic situation, Oxfam is concerned about abuse and exploitation of women and girls. Privacy, health, and hygiene for women, girls and nursing mothers are compromised, and measures must be taken to prevent any form of sexual violence.More than 70 per cent of the nearly 430,000 Rohingya refugees who have fled to Bangladesh are without adequate shelter and half have no safe drinking water, Oxfam warned today.

Heavy rains and floods in camps have left people facing extreme hardships, and have slowed down the building of emergency shelters, clean water tanks, and the delivery of aid.

“Women and children are particularly vulnerable, sleeping under open skies, roadsides, and forest areas with little or no protection.”

Since August 25, nearly 430,000 Rohingya people have crossed over to Bangladesh’s South-Eastern districts resulting in a massive humanitarian crisis. Of these it is estimated that over 300,000 have inadequate shelter and about 210,000 have no clean water.

Donations to support Oxfam’s emergency responses around the world can be made online at oxfam.org.nz/drf or by calling 0800 600 700.

Oxfam warns of Maria’s impact in Dominican Republic

September 24, 2017

Oxfam is currently preparing to respond to the likely humanitarian needs of people now being hit by Hurricane Maria in Dominican Republic. Much of the country is already saturated after the recent heavy rains caused by Hurricanes Irma and José. This flooding has put the most vulnerable population at risk, especially those living in mountainous regions and near rivers, canyons or areas prone to landslides.

“We are monitoring the effects of Hurricane Maria now. Oxfam staff and partner organizations are prepared to support any response that the Dominican government might organize, “said Raúl del Río, Oxfam Director in the Dominican Republic.

Oxfam will likely focus on water, sanitation and hygiene assistance. It is most concerned about the risk of dengue, zika, cholera, leptospirosis and other vector-borne diseases. Oxfam would also respond to with food aid for the most affected people, should that be required.

Mr del Rio said that there is an unequal distribution of risk in the country, where women, people with disabilities, children, and poorest citizens were all at greater risk of being affected by the impact of an extreme weather event.

As a result, Oxfam will continue to advocate for the rights of those affected and will continue to report the inequalities that affect those who are least affected by disasters.

Mexico earthquake: Oxfam sends in assessment teams

September 24, 2017

Oxfam is sending in two teams of humanitarian experts to Morelos and Puebla, with more on the way, following the 7.1 earthquake that struck central Mexico on September 19th. This is the second earthquake to strike Mexico in less than two weeks.

Over 200 people have died and hundreds are injured. Many remain trapped under rubble.

Morelos and Puebla are two of the most affected areas. Oxfam’s response plan is likely to focus on food, water and sanitation and protection. The assessment teams are made up of Mexican, Colombian, Peruvian and Spanish nationals.

Donations to support Oxfam’s emergency responses around the world can be made online at oxfam.org.nz/drf or by calling 0800 600 700.