Monthly Archives November 2012
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
November 23, 2012 New Zealand Taxation
On November 22nd the World bank released its annual Paying Taxes report on the tax compliance procedures faced by businesses in 186 countries around the world.
According to the World Bank New Zealand is now ranked eighth in the world for the ease of paying taxes, with businesses only having to make 8 tax payments per year, and the average business spending 152 hours per year to comply with their obligations.
The World Bank regarded New Zealand as having a tax system which has proven itself to be resilient throughout economic downturns in the country.
However, the New Zealand tax system was criticized for not differentiating between the tax filing obligations of large and small businesses, with small enterprises fulfilling the same tax requirements as expansive multinational operations.Read More
Tax changes are needed in order to encourage more investments and savings in New Zealand.
Last week at a speech given during the Trans-Tasman Business Circle in Auckland the chief executive of BNZ Bank Andrew Thorburn said that the taxation of property needs to be changed to further promote investment into businesses.
He said that there are insufficient options for individuals looking to invest into assets other than property.
Listing off possible alternatives, Andrew Thorburn suggested that further development is needed into encouraging people to invest in publicly listed companies, venture capital and capital markets.
Describing the current investment market in New Zealand, he said that “…the tax system currently favours investment in residential property, as opposed to bank deposits an...Read More