Monthly Archives June 2011

Diabetes Sparks Tax Debate

June 30, 2011 New Zealand Taxation

GST on Fruits and VegetablesThe Labour Party and the Green party are teaming up in support of new tax incentives which would lead to New Zealanders to have healthier diets and purchase more fruits and vegetables.

According to conclusions drawn in new research published by the World Health Organization, New Zealand has one of the highest rates of diabetes sufferers in the world. The report has prompted Labour Party leader Phil Goff to stand up in renewed support of cutting the Goods and Service Tax (GST) on fresh fruits and vegetables.

At a press conference held in Wellington on the same day, Grant Robertson, health spokesperson for Labour, said that that the National party’s refusal to cut GST fro fruits and vegetables “exposes the folly of the Government’s refusal to promote healthy eating policies”...

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Failed Software Projects To Be Tax Deductible

June 22, 2011 New Zealand Taxation

Tax deductionsThe New Zealand government has announced a change to the national tax system, aimed at encouraging local companies to engage in innovative software development projects.

To the appreciation and approval of the New Zealand software development industry, the New Zealand Revenue Minister Peter Dunne has confirmed in a press conference held in Wellington on June 20th that the Inland Revenue Department’s (IRD) decision to allow deductions for failed software development projects.

In April this year the IRD issued a notice, reversing a decision made in 1993 which allowed for a deduction to be made on a failed software development project. The IRD claimed that expenses towards the development of software were a contributor to an eventual software asset...

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New Zealand Economy Responds to Earthquake

June 16, 2011 New Zealand FinanceNew Zealand Taxation

Christchurch EarthquakeNew Zealand is now examining the effect that the latest Christchurch earthquake will have on the national economy.

On June 13th the city of Christchurch was struck with yet another set of earthquakes, leaving the town facing even greater damage and devastation, and even greater rebuilding costs. The country is now looking to see what effect the latest events will have on the economic growth, what changes it might spur the government to carry out in the tax system, and what will be the impact to the ever rising costs of rebuilding the quake shattered town.

According to the international disaster modeling firm EQECAT, the cost of the latest earthquake could rise as high as NZD 6 billion...

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OCR Unchanged Due to High Dollar

June 9, 2011 New Zealand Finance

Official Cash RateThe New Zealand Official Cash Rate will remain unchanged, as the high Kiwi dollar and constrained domestic economic activity mean that an increase will only serve to hamper growth.

New Zealand is looking to be set on the road to financial recovery and sustained economic growth following the recent Christchurch earthquake, but the growth does not yet warrant an increase to the national Official Cash Rate (OCR). On June 9th the reserve bank of New Zealand announced the outcome of the latest OCR review, saying that the rate will remain unchanged, at the current rate of 2.5 percent.

During the OCR announcement Reserve Bank Governor Allan Bollard said that the outlook for New Zealand’s economy had “improved since the publication of the March Statement”, but economic indicators suggested that a ...

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