Monthly Archives January 2010

Government to Continue Pursuing Tax Cuts

January 13, 2010 New Zealand FinanceNew Zealand Taxation

DSC_5676New Zealand Prime Minister John Key has given indications that the New Zealand Government will continue to investigate the viability of personal tax cuts in 2010.

At his first press conference for 2010 John Key summarized the Government’s goals for the new year, and said that “Shoring up the tax base and ultimately lowering personal tax rates are important”. Though he provide no further details, John Key said that further explanations on the Government’s economic position will be provided on February 9th, at the opening of Parliament.

Ultimately, no further decision on personal taxation can be expected before discussion on the findings of the Tax Working Group, a government sponsored collective charged with investigating the country’s taxation future...

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NZ Union Calls for More Banking Regulations

January 12, 2010 New Zealand FinanceNew Zealand Taxation

Caution tapeA New Zealand union has called for the government to increase regulations on the banking sector, claiming that the country’s four largest banks paid over 220 percent of their profits in dividends while lowering conditions for workers.

The New Zealand finance sector union Finsec has cried out in protest to ANZ, Westpac, BNZ and ASB banks paying out large dividends while allegedly making jobs redundant, freezing wages and outsourcing work. According to Finsec, the combined profit in 2009 for the four largest banks was NZD790 million, while their dividend issue exceeded NZD1.7 billion.

In a media statement Finsec said that there is a gross misbalance between the amount of protection the banks have provided to their shareholders, and the amount of assistance they have provided towards New Ze...

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Donation Tax Credit Laws Come Into Effect

January 6, 2010 New Zealand Taxation

Beehive reflected in Government Building @ WellingtonNew Zealanders can now receive automatic tax credits for their charitable donations.

From January 7th donations made automatically from an employees pay package will be eligible for automatic tax credits, bypassing the previous system of end of year claims. Employees will receive a third of the donation amount back through a PAYE tax credit. Describing the ease of use of the new system Peter Dunne, Revenue Minister of New Zealand, said “…it’s really convenient for workers, is low-cost and effective for charities, and helps employers and their staff become more engaged with the community”.

The new law was enacted in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill, which received Royal assent on October 6th...

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