Monthly Archives July 2013
July 17, 2013 New Zealand Taxation
New Zealanders may have to brace to feel the sting of yet another set of tax hikes on petrol, as the government looks for more funding for Auckland’s roads.
On July 16th the Transport Minister Gerry Brownlee suggested that New Zealand could see a further hike in the taxes levied on petrol, with the raised funds being earmarked for road development projects around the country, especially in Auckland.
The Minister’s comment came shortly following the release of a new report on potential means to fund roading development in Auckland, calling for regional tax hikes and the introduction of tolls on selected roads across the city.
Gerry Brownlee ruled out government support for the regional costs increases, but mentioned that there is a possibility that the currently planned annual 3 cent hike t...Read More
July 9, 2013 New Zealand Taxation
An accountant has been sentenced for evading over NZD 100 000 in taxes, and for purposely misleading the IRD during its investigations of the evasion.
Last week the Tauranga based accountant Bruce Woodward was sentenced to 10 months of home detention and 150 hours of community service for eight charges of filing misleading tax returns, five charges of failing to file returns, and one charge of perjury.
According to the group manager for investigations and advice for the IRD Patrick Goggin, the case is the first for the Department involving perjury charges.
Explaining the reason behind the perjury charge, Patrick Goggin stated that in 2009 Bruce Woodward was called in for an interview with the IRD in order to answer several question regarding allegations of false record, and “…at the start...Read More
July 2, 2013 New Zealand Taxation
The Inland Revenue Department has issued new guidance on the criteria which will be used to judge and classify tax avoidance.
On July 1st the Inland Revenue Department issued a new Interpretation Statement “…to provide greater certainty on the principles the Commissioner will apply in reaching a view on whether an arrangement is ‘tax avoidance’.”
The Statement set out the Commissioners view that an arrangement may be regarded as tax avoidance if any element of the transaction utilizes provisions in the Income Tax Act in a manner which was not originally intended by Parliament.
The assessment of whether an arrangement should be considered to be tax avoidance will also take into account the commercial and economic reality surrounding the situation.
If a transaction is found to be tax avoid...Read More
July 1, 2013 New Zealand Taxation
New Zealand motorists will feel a hit to their wallet today as the first of three scheduled petrol tax hikes comes in effect today.
From today onwards motorists in New Zealand will be paying 3 cents more for every liter of petrol purchased.
The current tax rise will be followed by an additional 3 percent hike next year, and a further 3 percent increase in the following year.
Currently the total tax component on the purchase of fuel is now at more than 92 cents per liter.
According to the Minister of Transport Gerry Brownlee, the extra funds raised from the increased tax will be used to upgrade the national roading system, which will directly benefit commuters and travelers.
Petrol companies operating in New Zealand have already indicated that the increased tax will not be absorbed, and th...Read More