Monthly Archives December 2008
December 26, 2008 New Zealand Finance
According to figures from Statistics New Zealand has shrunk for the third quarter in a row.
The last three quarters go down on record as being the worst since 1989, as they have contracted 0.3%, 0.2% in the March and June quarters, respectively, in a measure of Gross Domestic Product (GDP). The September quarter has decreased by 0.4%.
According to BNZ head of research Stephen Toplis, this is not the end of the bad news with worse to be expected in 2009. Further, he expects that the GDP in the current quarter has fallen 0.6 percent and similar figures are expected the following quarter. In fact, even with the forecasted rise in GDP in the second half of the year, 2009 is set to be recorded as being a lower producer than 2008.Read More
December 23, 2008 New Zealand Taxation
Kevin Wayne Frazer, a Tauranga accountant has received a sentence of ten-month home detention and 250 hours of community service work on charges of Tax evasion.
Kevin Wayne Frazer, former director of Total Taxation and Accounting Services pleaded guilty in a Tauranga District Court on the 15th of December, to 68 charges of unpaid income-tax, GST, PAYE, fringe benefit taxes and student loan repayments. According to an IRD statement, income tax to an amount of $46,330, GST of $384,356, PAYE of $105,965, Fringe Benefit Tax of $2468 and student loans of $597 were not paid by Mr. Frazer. With Inland Revenue Department fines and charged interest, Kevin Frazer currently owes the IRD a total of $806,096.
According to the IRD there were no GST or income tax returns filed for Total Taxation and Acc...Read More
December 19, 2008 New Zealand Taxation
The Human Rights Review Tribunal has ruled that the In-Work Tax Credit does not breach the Bill of Rights or Human Rights Acts.
On the 3rd of June, 2008 a trial headed by the Child Poverty Action Group (CPAG) against the Crown sought to find whether the In-Work Tax Credit aspect of the Government’s Working-for-Families package broke human rights.
The crux of the argument lay on the fact that to receive the $60 tax credit, a sole parent was required to be in paid employment for 20 hours per week, or for 30 hours in the case of two parents. According to CPAG almost 200,000 children in New Zealand were therefore discriminated against by the government as their parents were exclusively on benefits, or not working enough to qualify for the tax credit.
Furthermore, the Human Rights Review Tr...Read More
December 18, 2008 New Zealand Taxation
In a speech made by Energy and Resources Minister Gerry Brownlee to parliament, the use of tax breaks as incentives has been proposed to increase the use of biofuels in New Zealand.
The key concern of the speech was to repeal a Labour government passed law which stated that by the year 2012 2.5% of the petrol and diesel market be sourced from biofuel. Garry Brownlee said that although there were a number of exciting biofuel projects in New Zealand, the amount was not enough to meet the law requirement. Subsequently, this would require fuel companies to import increasing amounts of biofuels and as it is sourced from overseas there is no guarantee that it will be done so from renewable or sustainable resources.
The current implementation of some biofuel productions competes directly with t...Read More