Monthly Archives January 2013
January 21, 2013 New Zealand Taxation
Allegations have been made that the local tobacco industry plans to obtain millions of dollars of undue tax refunds from New Zealand.
Late last week the Revenue spokesperson for the New Zealand First party Andrew Williams claimed that the tobacco industry of New Zealand will soon use an overlooked tax loophole to claim millions in tax refunds.
The Minister said that businesses in the tobacco industry have recently imported large quantities of cigarettes into New Zealand prior to the hike to excise duties on tobacco products, which was enacted on January 1st.
Andrew Williams said that the tobacco companies now plan to re-export the cigarettes out of New Zealand and to claim back the excise duties at the newly raised rate, potentially making “tens of millions of dollars for doing nothing.”
January 15, 2013 New Zealand Taxation
The government is mulling potential changes to the tax rules applicable to foreign investors, in an effort to prevent the erosion of the national tax base.
On January 14th the Revenue Minister of New Zealand Peter Dunne announced the release of a new issues paper on several proposed changes to New Zealand’s thin-capitalization rules.
The proposed amendments are intended to stop the occurrence of tax evasion carried out by foreign investors with New Zealand subsidiaries which pay excessive levels of interests in order to reduce their local tax liabilities.
The issues paper brings forward several rule changes to address the situation, but the focus was given to two primary proposals.
The first of the two main proposals was the extension of current thin capitalization rules to include non-re...Read More
January 14, 2013 New Zealand Taxation
New Zealand needs to take a step back and have a close look at the current tax code, before embarking on a fundamental overhaul of the tax system.
Grant Thornton, a partner at the taxation consultancy firm Greg Thompson, has heralded in the new year with a press release issued on January 14th, saying that the New Zealand tax code and tax administration systems need a complete overhaul.
According to Grant Thompson, over the years the New Zealand tax regulations have faced a succession of changes, updates and alterations, and now the entire tax legislation exceeds 3 000 pages in length.
The breadth and complexity of the tax code now means that the tax system is too complicated to be understood by an “ordinary Kiwi”, and “New Zealanders spend too much time, money, and aggravation understandin...Read More