Monthly Archives August 2009
August 20, 2009 New Zealand Taxation
Debate has yet again arisen in New Zealand over the issue of taxes, this time in regards to the option of raising GST.
In an effort to cheer the ever worsening prognosis regarding the Government’s decreasing revenues and balances, the idea of raising GST has been raised. The concept was put forward by the Government set up Tax Working Group, a group of experts tasked with advising on issues regarding taxation in New Zealand.
GST in New Zealand is currently set to 12.5%, the Tax Working Group has suggested raising this to 15%. This could potentially raise an extra NZ$2.1 billion annually. The idea of a 7.5% rise, to 20%, could yield a GST collection of an extra NZ$6.2 billion...Read More
August 18, 2009 New Zealand Taxation
Three years and four month worth of jail time has been given to a West Auckland man for 121 varying tax charges.
Somsanit Phommasa, a West Auckland based tiler, admitted to 121 separate charges of GST, PAYE and income tax evasion. In the period between 1998 and 2007 is accused of having accumulated $1,617,705 worth of evaded taxes.
Charges included imposing GST on customers while making no attempt to pass it onto the Inland Revenue Department. The GST fraud amounted to $479,607. Income tax was also not paid during the same period, it totaled $1,138,098. No PAYE was passed on from employees of Somsanit Phommasa to the IRD.Read More
New Zealand has signed new Tax Information Exchange Agreement with three countries.
New Zealand has signed Tax Information Exchange Agreements (TIEA) with the Cayman Islands, the British Virgin Islands and Gibraltar. The Gibraltar agreement was signed in a London ceremony, while the other two were signed in Washington DC.
Peter Dunne, New Zealand Revenue Minister, announced these new agreements on the 14th of August. He commented “Recent months have seen a flurry of TIEA signings internationally, as low-tax offshore financial centers seek to achieve a sufficient number of TIEAs to allow them to be seen as meeting the OECD’s standards for transparency and information exchange.”
The TIEA is a bilateral agreement, allowing for procedures by which tax information can be exchanged between two...Read More
An appeal will be filed to the High Court’s decision regarding its judgment of BNZ and its structured finance accusations.
According to statements made on the 11th of August by Andrew Thorburn, BNZ Chief Executive Officer, the bank will be filing an appeal to last month’s High Court decision. He said “This is a complex area of law, and given the facts of the case, we’re not convinced that the decision was the right outcome.”
The IRD accused the bank of engaging in six separate “structured finance” operations which, according to the IRD, held no commercial utility beyond the lowered taxation liability which resulted for BNZ...Read More