Monthly Archives August 2012
August 31, 2012 New Zealand Taxation
Road user charges and taxes on petrol are set to go up, as the government looks to finance the development and improvement of the country’s road system.
The fuel excise duties and road-user charges faced by New Zealanders will be raised even further within the next 12 months in order to raise more funds to finance transport projects around the country, according to a statement made on August 30th by the Prime Minister John Key.
The government has not yet finalized the size of the increase, and a decision should be made by the end of the year.
Commenting on the potential size of the tax rise, the Transport Minister Gerry Brownlee indicated that the tax hike will be “in the realms of the rate of inflation”.
The extra tax revenues gathered from the increase will be used to fund improvements ...Read More
August 29, 2012 New Zealand Taxation
The government has been told to introduce a “universal child payment” system and raise the tax credits available to low income families in order to combat child poverty in New Zealand.
Nearly a quarter of all children in New Zealand are living in poverty and the government needs to implement a universal child payment system to help address the situation, according to a report released by the Children’s Commission on August 28th.
The Commission recommends that the government instate a universal child payment system which would pay low income households between NZD 125 and NZD 150 per child under the age of six.
The situations of New Zealand children living in poverty would also be improved if the government increased the tax credits which are available to low income families, as, according...Read More
August 28, 2012 New Zealand Taxation
The Inland Revenue Department has seen significant success in fighting tax evasion over the last 12 months, uncovering millions of dollars of tax discrepancies and recovering unpaid student loans.
Last week the Inland Revenue Department released its annual Compliance Focus report, detailing the Department’s efforts to improve tax compliance in the country throughout the last 12 months. Throughout the last year the Department has uncovered approximately NZD 135 million of discrepancies on tax returns, with nearly NZD 44 million of economic activity which was previously undisclosed and part of the hidden economy.
The IRD’s efforts to increase repayment of student loans has also seen success, with the Student Loan Overseas-Based Borrowers initiative resulting in NZD 27...Read More
August 27, 2012 New Zealand Taxation
New Zealand’s richest taxpayers are routinely not paying the top income tax rate, and are claiming to have incomes of below NZD 70 000.
New information made publicly available by the Inland Revenue Department on August 26th shows that more than half of wealthy individuals in New Zealand with assets worth more than NZD 50 million are not paying the top personal tax rate on their incomes.
According to the IRD, there are approximately 250 New Zealanders with a net worth exceeding NZD 50 million each. Between the years of 2009 and 2011 the IRD conducted a survey on 184 of the taxpayers in this category, and found that only 49.5 percent of them had declared incomes exceeding NZD 70 000 per year.
Similar research conducted by the IRD for the years between 2001 and 2008 showed that more than half...Read More