Monthly Archives November 2015

NZ Treasure Backs Sugar Tax

November 25, 2015 New Zealand Taxation

Evidence prepared earlier this shows that taxes on sugary drinks would have an impact on obesity rates in New Zealand, especially among low-income earners.

On November 19th the Treasury released a report on the potential feasibility of implementing several measures aimed at tackling the country’s growing obesity problem.

The tax measures examined in the report include a sugar tax, a fat tax, and the removal of GST on fresh fruits and vegetables.

The Treasury found that academic evidence shows that a tax on the sale of sugar laden beverages will lead to a reduction in the rate of obesity in the country.

It was noted that those opposing the tax have claimed that the tax will exert a disproportionately heavy effect on low-income earners, but it was also noted that low-income earners experi...

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Home Detention for $1 Million Tax Evader

November 23, 2015 New Zealand Taxation

A director of two security companies in Wellington has been found guilty of dodging taxes of almost a million dollars.

Last week the Wellington District Court a serial tax offender was sentenced to eight months home detention.

Paul Cornel Coffey, a director of two security companies, was found guilty of 79 tax offenses, including failing to file GST returns and failing to pass on his employees PAYE contributions.

It was noted that Paul Coffey failed to pay approximately NZD 900 thousand in taxes over the course of three and a half years, with the amount rising to NZD 1.5 million after accounting for interest and penalties.

Along with the 8 months home detention, Paul Coffey also was sentenced to pay NZD 20 000 in reparations and to serve 280 hours in community service.

The Inland Revenues...

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Reserve Bank Releases Financial Stability Report

November 11, 2015 New Zealand Finance

The New Zealand financial system is generally in god health, but faces threats from falling dairy prices and a surging property market.

On November 11th the Reserve Bank of New Zealand released its annual Financial Stability Report, detailing the national financial system and the risks it faces.

It was noted that the national financial system is generally in a positive state, however, it still faces some significant risks in the foreseeable future.

One of the major current risks is the debt accrued by the dairy industry, especially in the face of falling profits caused by a lull in international prices for dairy products.

Additionally, the current state of the housing market also poses significant risks, due to the rapid appreciation of housing in the country, especially in the Auckland r...

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NZ Budget Dips Again

November 6, 2015 New Zealand Taxation

The New Zealand government is in a better financial position than previously forecast, despite returning back to a deficit.

On November 6th the Treasury of New Zealand issued a new statement to announce that the government has returned to a budget deficit, although it is smaller than previously forecast.

The operating balance before gains and losses reached a deficit of NZD 545 million for the three months ending 30 September 2015.

However, the deficit is still NZD 253 million lower than expected for the period.

The better-than-forecast results were attributed to “…higher tax receipts as well as lower operating and capital payments than forecast.”

It was also stated that the results can be partially attributed to a drop in the outstanding liabilities by the ACC.

The net debt of th...

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