corporate tax tagged posts

Government Eyes Tax Tweaks for Landlords

July 30, 2012 New Zealand Taxation

commercial lease inducement paymentsThe government is looking for suggestions on how to maximise tax revenues from payments made by landlords of commercial property to potential tenants.

On July 27th the New Zealand Inland Revenue Department released a new issues paper, calling for public comment on the government’s proposal to tighten the tax treatment of lease inducement payments.

According to the issues paper, the current tax treatment of inducement payments results in a “revenue risk to the tax base”, and the paper makes several suggestions which would change tax regulations to make the payments taxable.

The Inland Revenue Department describes inducement payments as “a payment given by a landlord to a prospective tenant as an “inducement” to enter into a commercial lease...

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New Zealand Tax System Ranked 27th

November 18, 2011 New Zealand Taxation

CoinsThe New Zealand tax system has been rated as the 27th best in the world for its ease of compliance.

Last week the international professional services firm PricewaterhouseCoopers released a new study ranking the tax burdens and ease of paying taxes in countries across the world. In the report New Zealand was ranked as the 27th highest in regards to the efficiency of its tax system.

The research compared the tax systems of 183 different countries, inspecting the burdens faced by medium sized businesses in the respective country. Specifically, the study looked at the number of tax payments faced by an average business, the time it would take for a representative business to comply with its tax obligations, and the total tax rate a company would face.

New Zealand was regarded as having 8 taxe...

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IRD’s New Benchmark is Unrealistic

September 27, 2011 New Zealand Taxation

IRD Tax rulesTax experts in New Zealand are calling out the Inladn Revenue Department for taking unreasonable new stances towards salary payments and tax evasion.

Over the weekend Jo Doolan, a tax partner at Ernst & Young New Zealand, commented on the recent court ruling in the “Penny & Hooper” tax case, saying that the Inland Revenue Department (IRD) is now using the case as justification for further tax measures on business owners.

According to Jo Doolan the Inland revenue Department is proposing that, in the future, at least 80 percent of the profits earned by a company in the service sector should be paid out to shareholder employees...

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New Zealand Taxes Draw Australian Firms

May 31, 2011 International FinanceNew Zealand Taxation

New Zealand corporate taxesNew Zealand’s business environment and tax policies are encouraging a greater number of international companies to shift their operations into the country.

While making a media statement on May 31st, ManufacturingNZ executive director Catherine Beard said that New Zealand’s 28 percent corporate tax rate and comparatively low wage rates is an strong incentive for Australian manufacturers to shift at least part of their production to New Zealand based facilities. Her comments came in response to an announcement made on May 27th by the global food manufacturer Heinz that it will move part of its sauce making operations to its subsidiary Watties in Hastings, within the next 12 months.

She said that Heinz’s transfer to New Zealand would not directly result in any more jobs being created,...

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