Tax Collections Outstrip Forecast
July 9, 2012 New Zealand Taxation
The government could see its tax revenues for 2012 exceed forecasts, as collections for the first 11 months of the year remain above target.
On June 11th the Treasury of New Zealand released the Tax Outturn Data for the 11 month ending in May 2012, showing the preliminary information on the government’s tax collections for the period.
The data in the report indicated that it may be possible for New Zealand to exceed its target for corporate tax collections for the year, due to unexpectedly buoyant collections of taxes from Portfolio Investment Entities (PIE).
According to the report, total unconsolidated tax revenues for the time period reached NZD 425 million, which is approximately 0.8 percent higher than forecasted by the government and nearly 5 percent higher than during the same period last year.
Corporate taxes showed the largest rise in collections, exceeding forecasts by 5.1 percent. Revenues from the collection of taxes from Portfolio Investment Entities showed the most significant jump, and surpassed estimates by NZD 200 million.
Revenues from Goods and Service Taxes were NZD 192 billion above the government’s own forecasts, and were attributed to growing consumption levels amongst private consumers.
The report also showed that Core Crown expenditures for the time period were NZD 431 million below forecasts.
Tax experts have already suggested that the higher than expected revenue levels mean that the government could see tax collections for the 2012 year exceed previous expectations.
Photo by patrick h. lauke