StarBlazer:wazzageek: Apologies to StarBlazer - I'm not getting at you, just using your quote to supply context ...)
Amazon and the ilk will not be paying New Zealand Tax either (unless I'm mistaken) - I believe that iTunes does?
Bricks and mortar shops also have to factor in shrinkage (I was lead to believe that a certain major chain store had a shrinkage rate of 33% - that included theft and losses due to damages in transit etc.)
No offence taken. My comments were intended to be open and freely discussed.
I'm not sure whether it's iTunes or Microsoft (or one of the big companies) that has it's offices registered in Ireland due to favourable tax laws. No of course Amazon etc won't be paying NZ tax but isn't this law about ensuring the rights holder and artist etc get the money they deserve. So wherever I buy from they will get their respective cut.
You're thinking of Google, headquartered in Ireland for favourable company tax.
The point is that GST explains 15% of the difference between amazon's prices and the prices at NZ stores (whether online or bricks & mortar).