We conclude that overall debt levels are relatively modest and multinationals are not significantly indebted when compared to New Zealand-based companies. For our foreign multinationals 108 strong sample, the average proportion of interest to earnings is currently 17 per cent. Using publicly available information, we've reviewed the debt levels of 108 foreign-owned companies and, for comparison, 45 widely-traded New Zealand-headquartered companies listed on the S&P/NZX-50. This indicates Woodhouse has debt levels and interest deductions claimed by multinationals in his sights. These limit the amount of tax-deductible interest where a foreign-owned NZ operation is financed with more than 60 per cent debt.

Source: New Zealand Herald August 07, 2016 04:07 UTC