Monthly Archives September 2011
Excessive Government debts and credit card borrowing have led to New Zealand’s credit card rating being downgrade from AA+ to AA.
In a move that did not seem to surprise many, New Zealand’s credit rating was been downgraded from AA+ to AA on September 30th by Fitch Ratings. The international ratings agency pointed to the country’s staggering external debt levels as the primary reason behind the downgrade.
New Zealand’s net external debts currently stand at 83 percent of the GDP. According to Fitch Ratings, there has been no significant evidence that the figure is likely to drop, with neither the government nor public showing signs of making strong moves to slash their debts. It was added that the country also has a high current account deficit, which is expected to hit 4...Read More
Australian winemakers are calling for a revision of tax measures which they say are allowing the market to be flooded with product, and reducing profits in Australia and New Zealand.
Two Australian winemakers, Premium Wine Brands and Treasury Wine Estates, are calling for a removal of the currently active Wine Equalization Tax (WET), which they claim is unjustly supporting economically unsustainable wine producers in Australia and New Zealand.
The WET system is a value based tax which is charged on all Australian and New Zealand wines that are sold in Australia. Under the current WET scheme, wine producers are able to claim rebates on all wines sold in Australia, up to a maximum of AUD 500,000...Read More
September 27, 2011 New Zealand Taxation
Tax experts in New Zealand are calling out the Inladn Revenue Department for taking unreasonable new stances towards salary payments and tax evasion.
Over the weekend Jo Doolan, a tax partner at Ernst & Young New Zealand, commented on the recent court ruling in the “Penny & Hooper” tax case, saying that the Inland Revenue Department (IRD) is now using the case as justification for further tax measures on business owners.
According to Jo Doolan the Inland revenue Department is proposing that, in the future, at least 80 percent of the profits earned by a company in the service sector should be paid out to shareholder employees...Read More
September 23, 2011 New Zealand Taxation
The Labour Party is reaffirming its tax policy stance, saying that the country needs to make bold moves in setting its tax policies, such as the proposed capital gains tax.
In a presentation in Wanganui on September 22nd the Labour Finance spokesperson David Cunliffe spoke about the party’s intended tax policies. David Cunliffe conceded that new taxes were not typically popular with voters, but the Party’s proposals had so far been met with a better reception than anticipated.
David Cunliffe reaffirmed New Zealand’s need for a capital gains tax, saying that New Zealand was one of only three OECD member states to not have the tax. The Minister explained that the new tax would encourage people to invest in productive assets and not just in property...Read More