Monthly Archives February 2010
The New Zealand Business Council for Sustainable Development (NZBCSD) is encouraging New Zealander’s to focus on the long-term positive effects of tax changes and not the “day-one impacts” of any Government reform propositions.
In a press release issued on February 12th the NZBCSD has stated that they are in full support of equating top personal, corporate and trust tax rates, along with lowering across the board personal rates and broadening the tax base, while raising taxes on consumption, as proposed by Prime Minister John Key in his first statement to Parliament on February 9th. The NZBXSD claims that this would lead to a fairer and more sustainable tax system, eventually expanding the economy and drawing in greater numbers of international investors.
The NZBCSD proposed a simil...Read More
February 10, 2010 New Zealand Taxation
Putting an end to months of waiting, Prime Minister John Key made his first statement to the Parliament, on February 9th, outlining the Government’s intentions for the tax system, economic growth, along with making the long awaited response to the Tax Working Group Report.
With the countries recent focus on the tax system and possible reforms, John Key initiated his speech by disclosing the Government’s plans for the taxation landscape. He indicated that investigations are currently being held around the feasibility of implementing a raised Goods and Service Tax (GST) rate of up to 15 percent, from the current 12.5 percent. It was revealed that there could be a lowering at all levels of personal tax rates, with particular emphasis on top-earners...Read More
February 9, 2010 New Zealand Taxation
The New Zealand Inland Revenue Department (IRD) will be in the Court of Appeals this week in an effort to overturn a landmark court decision, which found tax evasion allegations against two medical professionals refuted.
In a court action that will be closely monitored by both the medical profession and other high-cost professionals the IRD is seeking to claim that two Christchurch based orthopedic surgeons were using company and trust structures to pay themselves less than the typical rate for their profession. The IRD initiated court action against the two doctora, and the High Court found against the department in April.
Due to the wide spreading implications of any decision made in the proceedings great attention is being paid to the case, with some speculation arising that it could l...Read More
New Zealand unemployment numbers rose by 0.8 percent in the December quarter. The rise is larger than projected by the Government, and has been attributed to an increase in the working age population.
According to a February 4th media release by Paula Bennett, Social Development and Employment Minister, New Zealand’s unemployment figure has risen to 7.3 percent. The figure represents approximately 168 000 unemployed across the country. The rise was caused by an extra 14 500 individuals entering into the New Zealand’s working age population. According to Paula Bennett the New Zealand economy has been growing, but the rate of growth of jobs has not matched the number of extra workers in the quarter.
The minister stated that it is typical to see that job growth lagging behind an economic ...Read More