Monthly Archives June 2012

Kiwirail Valuation Adds NZD 1.8M to Deficit

June 28, 2012 New Zealand Finance

Kiwirail to be revaluatedKiwirail is set to slash the value of its assets by approximately half, a move that will see the national budget deficit stretch out even further.

On June 28th the Minister of Finance Bill English and the Minister of State Owned Enterprises made a joint announcement that Kiwirail will soon write down the value of its own commercial assets, which will also have the effect of widening the government’s budget deficit for the current fiscal year.

The revision will see approximately NZD 6.7 billion slashed from the value of Kiwirail’s land and network assets.

Kiwirail already has a NZD 4.9 billion revaluation reserve on its books, and the new evaluation will only affect the company’s bottom line by NZD 1.8 billion. The NZD 1.8 billion drop will also be reflected on the government’s statements.

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Duty Free Tobacco Leads to Tax Loss and Black Market

June 25, 2012 New Zealand Taxation

Duty Free allowances in New ZealandCalls have been made to further raise cigarette taxes and ban duty-free allowances on tobacco products for travelers in order to reduce the number of smokers in the country, to cut down activity on the black market and to raise government tax revenues.

Over the last week several health groups stepped forward to make a joint public submission on the Customs and Excise (Tobacco Products – Budget Measures) Amendment Bill, which introduces the tobacco taxes announced by the government in the recent budget. The groups called on the government to scrap all duty-free allowance on cigarettes for travelers coming into New Zealand.

The participating health groups include the Royal Australasian College of Physicians, the Cardiac Society of Australia and New Zealand, the Heart Foundation, Maori Medic...

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Dunne Summarizes Coming Tax Changes

June 22, 2012 New Zealand Taxation

Peter Dunne talks about tax changesThe government is looking to implement several tax changes in order to ensure that New Zealand’s tax system continues to stay fair and is appropriate for the current financial conditions around the world.

On June 21st the Minister of Revenue Peter Dunne gave the keynote speech at the annual conference of the New Zealand Payroll Practitioners’ Association in Auckland, describing the current state of the national tax system and detailing upcoming changes for tax processing and filing.

According to the Minister, due to the financial situation in Europe, New Zealand can no longer continue borrowing money to fund public spending, and this situation underlines the importance of having an efficient tax system in the country...

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Asset Sale Wont Lead to Tax Hike

June 21, 2012 New Zealand Taxation

Peter DunneRecent tax changes implemented by the government will cover any loss of revenue arising from asset sales and will reduce the chance that the government will need to raise taxes in the near future.

On June 20th the New Zealand Minister of Revenue Peter Dunne addressed the Parliament’s finance and expenditure committee, saying that recent actions taken by the government will raise enough revenues to cover all the losses which are expected to arise from the currently proposed sale of state owned assets.

According to the Minister, in last month’s budget the government introduced new measures to tighten down on tax evasions, closed several tax loopholes, and increased excise taxes on tobacco and petrol. He claimed that the new measures will jointly raise tax revenues by NZD 1...

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