Monthly Archives May 2016
May 16, 2016 International Taxation
Australia may put the brakes on a proposal which could have resulted in a drought of foreign labor coming to the country.
Over the weekend the Prime Minister of Australia Malcolm Turnbull indicated that the proposed “backpacker tax” could be delayed or dropped entirely, following gears that the measure would see seasonal agricultural workers skip Australia in favour of New Zealand.
The “backpacker tax” is a proposal which would see holidaymakers taxed at a rate of 32.5 percent on the first dollar earned, instead of enjoying a tax-free threshold of AUD 18 200.
The tax has been a subject of controversy ever since it was first announced, especially in agricultural regions of the country, which are highly reliant on temporary labour provided by temporary holidaymakers.
It is feared ...Read More
May 12, 2016 New Zealand Finance
Prices of food fruits and vegetables in New Zealand have risen, although meat and grocery items have become cheaper.
In a press release on May 12th Statistics New Zealand showed that in the year ending April 2016 the price of food in New Zealand rose by 0.5 percent.
The overall rise in the price of food was attributed to a disproportionate increase in the cost of fruits and vegetables, which rose by 8.9 percent.
Over the month of April alone, the price of fruits and vegetables rose by 6.3 percent, although the levels falls to 4.8 percent after seasonal adjustments are taken into account.
It was shown that the hike in prices was led mainly by tomatoes and avocados.
Conversely, the price of grocery items decreased by 1...Read More
May 4, 2016 New Zealand Taxation
The Greens are calling on the government to crack down on tax dodging multinational companies.
On May 4th the Green Party issued a statement calling on the government to use the upcoming Budget to introduce new measures to combat tax evasion and profit shifting by multinational companies operating in New Zealand.
In its release the Green Party claimed that New Zealand is missing out on “… up to $1 billion of lost tax revenue a year from the likes of companies like Apple, Facebook, Pfizer, and ExxonMobil.”
As a suggestion of what could be done to combat profit-shifting, the Green party pointed to new regulations implemented by the Australian government to charge a tax of 40 percent on illicit profit shifting.
It was also noted that while the IRD has cracked down on the tax affairs ...Read More