Monthly Archives December 2011
December 16, 2011 New Zealand Finance
After nearly a decade of spending beyond their means, New Zealanders are finally saving a portion of the incomes they earn each month.
On December 15th Statistics New Zealand released the latest Institutional Sector Accounts report, showing that New Zealand households have begun saving money for the first time in over a decade.
The newly released statistics indicate that in the year up to March 2011, New Zealand households saved NZD 200 million more than they spent. The savings are equivalent to approximately 0.2 percent of net disposable household income in New Zealand. In comparison, in the year up to March 2010, New Zealand households spent approximately NZD 1.6 billion more than they earned.
New Zealand has not seen overall savings since the year up to March 2000...Read More
December 15, 2011 New Zealand Taxation
New Zealand’s tax laws and a lack of available capital are stifling growth in the biotechnology research sector.
On December 14th a new report was published by the Ministry of Science and Innovation, evaluating the current tax system and venture capital industry in relation to New Zealand’s biotechnology research sector. According to the report, the tax rules surrounding patent sales could be having a detrimental effect on the amount of high-tech research being carried out in New Zealand. The author’s of the report also found that there is a shortage of venture capital in the country.
Under current regulations, the sale of patents is taxed on its price, while the sale of other forms of intellectual property are treated as a capital gain...Read More
December 14, 2011 New Zealand Taxation
The national airline carrier Air New Zealand is looking at cutting flights to London, following 6 months of losses and due to the upcoming increases to the tax rate for passengers departing the UK.
Air New Zealand is considering cut backs to its international long haul operations, with the company’s flagship flight to London already facing the prospect of being axed. The company says that the upcoming UK air passenger duty is also contributing to the potential decision.
Under recently instated rules, from April 2012 economy class passengers flying from the UK to New Zealand will face a departure levy of GBP 92, compared to the GBP 85 they are facing now. Commenting on the effect of the tax, Brent Thomas, director of House of Travel, said that a family flying from Europe could save over ...Read More
December 13, 2011 New Zealand Taxation
The Inland Revenue Department has won a new court case, clarifying the tax treatment of Optional Convertible Notes in New Zealand.
On December 12th the Inland Revenue Department won a tax avoidance case against the building supply company Alesco, sending the signal that certain structures involving the use of Optional Convertible Notes could be ruled as means of evading taxes. Alesco, which is a subsidiary of an Australian kitchen supply company, will now be required to pay the Inland revenue Department approximately NZD 8.6 million in unpaid taxes, shortfall penalties and use of money interest payments.
The legal proceedings against Alesco involved the company’s use of Optional Convertible Notes (OCN), which are a hybrid instrument which offer the option payments in cash or as equity at ...Read More