Yearly Archives 2009
On December 16th, the Capital Market Development Taskforce (CMDT) released their final report to the New Zealand Government.
The Taskforce’s paper consists of six groups of recommendations for New Zealand’s capital markets. According to the report, if implemented, the ideas will improve the contribution of capital markets to the country’s economic growth and bring significant fiscal benefits to New Zealanders.
The CMDT has proposed that regulations be established to improve financial advisory services and information available to investors, along with improving investment literacy. Suggestions include replacing investment statements and prospectuses with more standardized disclosure documents. Warnings should be applied to high-risk and complex investments products.
The paper identifies...Read More
December 11, 2009 New Zealand Taxation
An issues paper was released on December 11th with a proposition to allow families with children to split their incomes, for tax purposes.
The issues paper examines the merits of introducing an income splitting system, whereby a family is regarded as one taxable unit, for tax purposes. Under the proposal, a family that is primarily responsible for the day-to-day care of dependent children under 18 will be issued tax credits. The issue paper suggests that the family’s total tax liability should be calculated on an equal split of its cumulative income, not individual earnings, and that tax credits should be issued equal to the difference between the figures.
Explaining the proposal, Peter Dunne, New Zealand Minister of Revenue, said “Because income taxes are progressive, with high incomes at...Read More
The On December 7th, Governments of New Zealand and Belgium signed a second protocol amending their currently active Double Taxation Avoidance (DTA) agreement.
The second protocol to the New Zealand-Belgium DTA was created to ensure the standing agreement’s relevance and applicability to the current tax laws of both countries. The DTA agreement is required to be amended in both countries before the second protocol can come into legal effect, in New Zealand this is done by Order in Council. Peter Dunne claimed in a media statement on December 10th, that he expects progress to be announced in early 2010.
The original DTA between New Zealand and Belgium was signed on September 15th, 1981, and came into force December 8th, 1983...Read More
December 7, 2009 New Zealand Taxation
A Coromandel woman has been sentenced to seven months home detention and 200 hours community service for tax charges.
Georgie Jensen was sentenced on December 3rd, in the Waihi District Court, after pleading to 13 counts of non-payment of PAYE. Graham Pomeroy, Inland Revenue Assurance Manager, commented on the offences, saying “Failure to meet PAYE obligations is a breach of trust between the director and the employees. But in Jensen’s case, it wasn’t just PAYE but also child support and student loan deductions”.
Georgia Jensen was the director, sole shareholder and an employee of NZ Rigging Services Limited, which she incorporated in 2007. In the period between March 2008 and May 2009, a total of NZ$74,016.69 of PAYE and other employee deductions was withheld from the IRD...Read More