Monthly Archives April 2010

New Zealand Outperforms Australia in Recession

April 20, 2010 New Zealand Finance

Recent research has suggested that Australian businesses fared worse in 2009 and 2008 than those in New Zealand.

In the recently released April 2010 MYOB Business Monitor report Australian and New Zealand business owners were surveyed for their opinions on the current economic situation in both nations. The report showed that 39 percent of surveyed businesses reported a fall in revenue during the twelve months to July 2009, while only 35 percent of New Zealand firms provided the same response. Commenting on the difference, Tim Reed, MYOB’s Sydney-based Chief Executive, said that the survey shows that New Zealand business showed a great sense of resilience throughout the economic downturn.

The report revealed that 50 percent of New Zealand business owners expected the economy to improve ove...

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NZ Investigates Taxation of Foreign-Owned PIEs

April 16, 2010 New Zealand Taxation

Wellington, New ZealandA new issues paper has been released, seeking views on two possible legislative changes concerning the tax treatment of non-residents investing in portfolio investment entities (PIE).

On April 14th Peter Dunne, New Zealand Revenue Minister, announced the release of Allowing a zero percent tax rate for non-residents investing in a PIE, an official New Zealand Government Issues Paper. The release of the paper is spurned by the International Fund Services Development Group (IFSDG), which was formed in April 2010 to advise the New Zealand Government on the changes required to create an international fund-service sector in New Zealand...

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NZ Fourth Freest Economy

April 14, 2010 New Zealand Taxation

Spaghetti JunctionNew Zealand is the fourth freest economy in the world, according to a newly released global economic freedom index.

The US Heritage Foundation and the Wall Street Journal have recently co-released the 2010 Index of Economic Freedom, which ranks nations according to their economic freedom. New Zealand scored 82.1 points on the index, out of a possible 100. The score reflects a 0.1 point rise from the 2009 score, due to a perceived marginal improvement in trade and fiscal freedom. New Zealand was one of only seven nations regarded as “free”, having exceeded a benchmark score of 80 points.

Business Freedom in New Zealand was marked 99.9 out of 100, with the Foundation praising the ease with which a business can be started in New Zealand...

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Jail Time for Property Developer

April 12, 2010 New Zealand Taxation

Entertainment District construction at nightA Wellington based property developer has been sentenced to two years jail time for multiple tax evasion charges.

On April 12th the Wellington District Court sentenced Lance Christopher James to two years jail time for 19 separate tax evasion charges amounting to NZD 365 184. Lance James pleaded guilty to eight charges of failing to file a personal tax return or paying appropriate tax obligations, and 11 charges of failing to pass on employee PAYE deductions. Despite having repaid some of the tax obligation, Lance James still owes NZD 168 000, excluding penalties and interest charges. James has been refused bail pending appeal of his sentencing.

Patrick Goggin, IRD Investigations Assurance Manager, issued a warning to others considering any form of tax evasion, saying, “Others who are t...

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