Yearly Archives 2012
December 5, 2012 New Zealand Taxation
New Zealand has seen another quarter of disappointing tax results.
On December 5th the Treasury of New Zealand released its monthly Tax Outrun Data report, showing that tax revenues over the October quarter were 0.7 percent below forecasts but 4.7 percent higher than in the same period last year.
According to the Treasury, the main variance between realized results and forecasts revenues were due to lower than forecast GST collections and lower than expected collections of indirect taxes.
GST for the 4 months was 5 percent below expected, due to weakened levels of private consumption.
Cumulative collection of indirect taxes such as road used charges were 14...Read More
December 3, 2012 New Zealand Taxation
A tax scam which netted three individuals approximately NZDD 55 000 has also earned them earned them fines, community work and community detention.
Last week three member of a Lower Hutt based church were sentenced for their involvement in a tax scam which saw them receive NZD 56 378.27 from issuing false donation receipts and claiming tax rebates belonging to 33 other people.
The accused, Faalemalo Ipiniu Letoga, Mau Veletaloola and Ita Vienna Aiomata, were ordered to serve 150 hours of community work each, sentanced to six months community detention each and also ordered to pay the Inland Revenue Department NZD 10 000 in reparations.
Explaining the actons taken by the trio, the group manager of investigations and advice at the IRD Patrick Goggin said that “…the actions of these individua...Read More
November 30, 2012 New Zealand Taxation
Facebook is avoiding its tax obligations in New Zealand, according to the Labour Party.
On November 29th the revenues spokesperson David Clark for the Labour Party issued a statement claiming that the New Zealand arm of Facebook only paid NZD 14 500 in taxes last year, making ” a mockery of Peter Dunne’s refusal to consider closing tax loopholes for multinationals.”
The David Clark explained that “…It appears Facebook is using the ‘double Irish’ tax technique. That’s where it uses Irish Facebook, which pays just 12.5% tax, to determine revenue and expenses. This ensures the company can put most of its revenue through countries with low-tax systems.”
He said that the Minister of Finance Peter Dunne calls this sort of corporate behaviour “legitimate tax avoidance”, while he hims...Read More
November 29, 2012 New Zealand Taxation
New Zealand is being urged to increase incentives for film makers, despite protestations from the Prime Minister.
Speaking in a radio interview on November 27th the Director of the Hobbit films Peter Jackson said that the New Zealand government needs to ensure that the tax incentives offered to film makers are competitive with those offered in other countries.
Peter Jackson explained that several other countries offered tax breaks and concessions to film makers in order to encourage more film productions, and that the New Zealand government may need to increase their own tax concessions to remain competitive.
So far the producers of the Hobbit films have received NZD 67 million in tax rebates, as part of the government’s Large Budget Screen Production Grant.
Responding to the Director’s co...Read More