Labour is warning multinational companies to play ball and pay their fair share of tax or pay penalties.
It reckons New Zealand is missing out on hundreds of millions of dollars a year, as multinationals hide their profits in complex global schemes.
SEE ALSO: Labour gets tough with multinationals
Leader Andrew Little is threatening to introduce a Diverted Profits Tax if Labour comes into power.
He told Larry Williams he has written to 60 multinational companies.
"Basically it says if we're not satisfied that you're declaring the full amount of tax owning, then we will deem a level of profit to have been earned and therefore you will pay tax on that, and it's then up to the multinational company to prove otherwise."
SEE ALSO: Labour's crackdown on multinationals will be costly - expert
LISTEN ABOVE AS LABOUR LEADER ANDREW LITTLE SPEAKS WITH LARRY WILLIAMS
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