Monthly Archives October 2012
October 30, 2012 New Zealand Taxation
New Zealand banks will soon need to pass on all information regarding their American clients, as New Zealand looks set to join the US FACTA agreement.
Late last week the Revenue Minister of New Zealand Peter Dunne announced that Cabinet has now agreed to lodge “…an expression of interest in negotiating a FATCA [Foreign Account Tax Compliance Act] tax information agreement”.
The FACTA was enacted by the US government in 2010 and requires all foreign financial institutions from participating countries to report to the US Internal Revenue Service all information regarding clients who are also US taxpayers.
Explaining the benefits of singing the agreement, Peter Dunne said “…without an intergovernmental agreement, financial institutions would have to enter into separate agreements with the IRS...Read More
New Zealand has once again been ranked as one of the easiest countries in which to do business, and is the jurisdiction with the quickest company formation period in the world.
In the Doing Business 2013 report jointly released by the World Bank and the International Finance Corporation on October 23rd, New Zealand was ranked third in the “ease of doing business” index.
In the report New Zealand was regarded as the country with the easiest regulations for starting a new business, with only one procedure to complete, which takes only one day, compared to the OECD averages of 5 procedures over the course of 12 days.
New Zealand is also ranked as the country with the best rules for the protection of investors, having the highest possible index scores for extent of disclosure, shareholder sui...Read More
October 25, 2012 New Zealand Finance
Photo by yum9meThe Reserve Bank announced on October 25th that the Official Cash Rate (OCR) of New Zealand will be left at 2.50 percent for another term.
The latest OCR announcement is the first policy review announced by the new Reserve Bank governor Graeme Wheeler, who took the position following Alan Bollard.
Graeme Wheeler explained that it is appropriate to leave the OCR at 2.5 percent “for now” as “the global economy remains fragile, with further recovery heavily dependent on policy implementation. That said, market sentiment has improved from earlier in the year, suggesting the risks to the global outlook are more balanced.”
The economic conditions in New Zealand were described as mixed, with GDP growth continue at a “modest pace” and the housing market expanding as previously pre...Read More
October 24, 2012 New Zealand Finance
The sale of shares in Mighty River Power has hit a new snag, as the government prepares to go to Court to hear objections regarding the sale.
On October 23rd the Finance Minister Bill English announced that the government will delay the signing of the Order in Council for the partial sale of Mighty River Power.
The Order was postponed upon the advice of the Court, as an interim date of November 26th was set to hear the a challenge in the High Court to the sale from the Maori Council and the Waikato River hapu Poukani.
The sale of Mighty River Power is currently scheduled for March 2013.
Commenting on the upcoming delay to the Order, the Prime Minister John Key said that he expects the issue to reach the Supreme Court, but does not expect the final sale to be delayed beyond March 2013.