Monthly Archives October 2009
October 30, 2009 New Zealand Finance
The New Zealand Official Cash Rate (OCR) remains unchanged, as of its 29th of October review.
On the 29th of October it was revealed that the Reserve Bank of New Zealand has decided to maintain the New Zealand OCR at 2.5%. The review was the fourth which had led to an unchanged OCR, the last alteration being on the 12th of March 2009.
According to Alan Bollard, Reserve Bank Governor, there seemed to be no reason to withdraw the monetary policy stimulus. Further, New Zealand’s inflation is currently on par with the Reserve Bank’s 1-3% inflation aim. Although it was stated by the Reserve Bank Governor that the current level of the New Zealand dollar is hindering the countries recovery...Read More
According to a KPMG survey, New Zealand has the seventh highest corporate tax rate in the OECD.
The KPMG 2009 Corporate and Indirect Tax Rate Survey, which investigates the corporate and indirect tax rates of the OECD for the 2009 year, has found that New Zealand holds the seventh highest corporate tax and one of the lowest indirect tax rates of the nations surveyed.
Ireland and Iceland had the lowest corporate tax rates in the survey, with 12.5% and 15% respectively. While New Zealand’s rate of 30% was rated 7th, with USA and Japan reigning the top spots at rates of 40% and 40.69% respectively.
The survey found that New Zealand holds the sixth lowest indirect tax rate in the world, with its 12.5% GST rate. Canada meanwhile has the lowest rate at 5%, and Denmark was the highest at 25%.
The Government established Tax Working Group has come into question by the Green Party.
According to a Green Party press release published on the 21st of October, Dr Russel Norman, Green party co-leader, has said that the government instituted Tax Working Group is “hopelessly compromised” and not an accurate representation of New Zealand society as a whole.
Dr Russel Norma’s objection centers primarily around the panel’s inclusion of John Shewan, a former Westpac Bank advisor. According to Dr Norman “The recent outcome of the High Court case in Auckland involving Westpac shows that members of the group set up to reform the NZ tax system have been actively involved in promoting tax avoidance to assist overseas-owned banks”.
According to the press release, the composition of the Ta...Read More
John Whitehead, Secretary to the Treasury, has stated that bold policies and tough decisions need to be made for economic recovery to occur.
In order for New Zealand to reach income levels comparable to that of Australia by 2025, New Zealand will require an estimated economic growth rate of 3.3%. According to John Whitehead, for this to become a reality, bold decisions would need to be made in New Zealand’s tax reforms and economic situation.
John Whitehead, conveyed these sentiments at an Institute of Directors workshop in Queenstown on the 25th of September, the notes of which were released by the Treasury on October 7th...Read More