Monthly Archives July 2013

Fat Tax Mooted in New Zealand

July 31, 2013 New Zealand Taxation

20070215  1834 hours chicken strips at the gameTaxes targeted at unhealthy food could drastically reduce the occurrence of heart disease in New Zealand.

In a new study published on July 31st by the Australian and New Zealand Journal of Public Health researchers raised calls for the government to consider implementing a tax on some “fatty foods” in order to change New Zealanders’ diets and improve the country’s health.

The study calls for targeted taxes to be used to reduce consumers’ consumption of saturated fats, claiming that a 1 percent hike in taxes on products containing such fats would lead to a 0.02 percent decrease in consumption.

The tax collections from the unhealthy foods cold then be used to reduce the tax burdens on foods rich in poly-unsaturated fats.

According to the finding of the study, a 5 percent reduction in the...

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Court Busts Intricate Tax Evasion Scheme

July 30, 2013 New Zealand Taxation

PaperworkFour men have been convicted for their roles in a multimillion dollar tax fraud scheme carried out over more than a decade.

Late last week the Wellington High Court today convicted three individuals in their roles in a intricate tax evasion system which resulted in the non-payment of more than NZD 1.8 million in taxes over the last 13 years.

Of the three men, Paul William O’Connor was found guilty of 12 charges of tax evasion, while Scott Crawford Anderson was found guilty two charges of aiding tax evasion and six charges of aiding and abetting, and Brent John Gilchrist was found guilty of the same six charges of aiding and abetting.

Another accused pleaded guilty to a further six charges, but has been granted name suppression.

Explaining the systems used by the accused, the group tax Coun...

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OCR Maintained at 2.5%

July 25, 2013 New Zealand Taxation

[mb] QuartersThe OCR has been left unchanged yet again, for the 18th time in a row.

The Reserve Bank announced today that the New Zealand Official Cash Rate (OCR) has been left at 2.5 percent at it latest review.

The Governor of the Reserve Bank Graeme Wheeler explained that the rate remained unchanged as the economic conditions in New Zealand and among its major trading partners has not yet grown and stabilized enough to warrant an increase to the rate.

Explaining the economic situation in New Zealand, the Governor said that consumer consumption and business activity is showing signs of picking up across several sectors, and there is also indication that activity in the construction sector is also on the rise.

However, the economic outlook across the rest of the world remains mixed, with signs of slow...

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New Zealand CPI at 0.7 Percent

July 18, 2013 New Zealand Finance

Cost of goodsNew Zealand’s CPI has fallen to the lowest level in 13 years.

On July 16th Statistics New Zealand released a new statement showing that the Consumer Price Index (CPI) over the year ending June 2013 was only 0.7 percent, the lowest level since 1999.

Over the course of the year, the most significant contributors to the overall price increase were a 2.6 percent increase in electricity costs, a 7 percent hike in vegetable prices, and a 1.7 percent and a 0.4 percent rise in the costs of purchasing and renting housing respectively.

The price of fruit over the year was the biggest drop, falling by 5.5 percent, followed by petrol and second hand cars, which decreased by 2.5 percent and 1.9 percent respectively.

Photo by Sandy Austin

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