Curious? Let’s See Just How Much Tax New Zealand Banks Paid

Have you ever wondered how much tax the New Zealand banks pay? Wonder no more. All your questions are answered below.

One of the most talked about topics since it was invented, and likely going to be one of the most talked about topics until the end of time (at least our time that is): Taxes.

Today – we’ll be taking a closer look at both the smallest and largest banks operating in New Zealand, their tax rates, how much they’ve paid, and how much they should’ve paid.

Before we begin – New Zealand’s official corporate tax rate is a flat 28%. As most of the banks operate as a company – use this figure to assess them off.

All the data you see in the following table has been sourced directly from their latest end of year financial statements.

We encourage you to view these statements yourself. There is a link in the final column of each row.

Tax Paid – New Zealand Banks

Bank	Net Profit	Tax Paid	Tax Rate	Weight	Tax	Variance	Tax Missing	Disclosure Statement
ANZ	2,105,000,000.00	570,000,000.00	27.08	33.12%	8.97%	-0.92	19,400,000.00	Link
ASB	1,270,000,000.00	357,000,000.00	28.11	19.98%	5.62%	0.11	-1,400,000.00	Link
Bank of Baroda	1,355,000.00	40,000.00	2.95	0.02%	0.00%	-25.05	339,400.00	Link
Bank of China	-1,849,000.00	-222,000.00	12.01	-0.03%	0.00%	-15.99	-295,720.00	Link
Bank of India	1,038,000.00	296,000.00	28.52	0.02%	0.00%	0.52	-5,360.00	Link
Bank of New Zealand	1,260,000,000.00	347,000,000.00	27.54	19.82%	5.46%	-0.46	5,800,000.00	Link
Bank of TMUFJ	29,692,000.00	3,224,000.00	10.86	0.47%	0.05%	-17.14	5,089,760.00	Link
Citibank	27,047,000.00	7,570,000.00	27.99	0.43%	0.12%	-0.01	3,160.00	Link
Cooperative Bank	14,396,000.00	4,053,000.00	28.15	0.23%	0.06%	0.15	-22,120.00	Link
HSBC	64,389,000.00	18,081,000.00	28.08	1.01%	0.28%	0.08	-52,080.00	Link
ICBC	1,832,000.00	680,000.00	37.12	0.03%	0.01%	9.12	-167,040.00	Link
Kiwibank	165,000,000.00	41,000,000.00	24.85	2.60%	0.64%	-3.15	5,200,000.00	Link
Rabobank	126,860,000.00	37,390,000.00	29.47	2.00%	0.59%	1.47	-1,869,200.00	Link
SBS Bank	28,327,000.00	8,354,000.00	29.49	0.45%	0.13%	1.49	-422,440.00	Link
TSB Bank	85,548,000.00	23,985,000.00	28.04	1.35%	0.38%	0.04	-31,560.00	Link
Westpac	1,178,000,000.00	327,000,000.00	27.76	18.53%	5.14%	-0.24	2,840,000.00	Link
Bank	Net Profit	Tax Paid	Tax Rate	Weight	Tax	Variance	Tax Missing	Disclosure Statement
	∑ = 6,356,635,000.00	∑ = 1,745,451,000.00					∑ = 34,406,800.00

Graphs

We love graphs, and we know you do too.

Here are some for you to play around with. First up – a pie chart providing us with a neat visualisation of just how much more tax the Big 4 banks pay.

Total Taxes Paid – Individual Banks ($)

Next up – the monetary value of the amount of tax missing from each bank’s due tax payable according to their financial statements.

A negative value indicates they’ve paid more than the set 28% in tax.

Tax Missing from 28% Rate ($)

Lastly – the tax rate according to the total amount of tax they’ve paid and their net profit before tax.

You’ll notice many sit right around the 28% mark, with only a few outliers far out on one side and the other.

Tax Rate Paid (%)

Fun Facts

Four banks (ANZ, ASB, WESTPAC, BNZ) contributed 91.44% of tax for the total banking industry
The average tax rate for all banks is 24.87%
However, the weighted average tax rate based on net profit is 27.46%
It’s an even 50/50 split on those who paid more than 28% and those who paid less than 28%
Only a single bank made a net loss for the period – Bank of China (who received a tax credit)
Bank of Baroda had the lowest tax rate of 2.95% – meaning it paid only 10.5% of the tax it was supposed to
In total – $1.779 billion in tax was collected from New Zealand’s banks
In total – $34.44 million was not collected in tax from New Zealand’s banks
However – the New Zealand government achieved a 98.06% rate of tax collection (only missing 1.94% of tax)