tax tagged posts
February 10, 2010 New Zealand Taxation
Putting an end to months of waiting, Prime Minister John Key made his first statement to the Parliament, on February 9th, outlining the Government’s intentions for the tax system, economic growth, along with making the long awaited response to the Tax Working Group Report.
With the countries recent focus on the tax system and possible reforms, John Key initiated his speech by disclosing the Government’s plans for the taxation landscape. He indicated that investigations are currently being held around the feasibility of implementing a raised Goods and Service Tax (GST) rate of up to 15 percent, from the current 12.5 percent. It was revealed that there could be a lowering at all levels of personal tax rates, with particular emphasis on top-earners...Read More
October 9, 2009 New Zealand Taxation
The Inland Revenue Department (IRD) has won its tax evasion case against Westpac Banking Corp, resulting in a NZ$918 million fine for the bank.
The New Zealand High Court made a decision to dismiss Westpac’s challenge to IRD’s decision that the bank owes $586 million in taxes for a series of structured finance transactions. The IRD claimed that between 1998 and 2002 the bank undertook a series of offshore transactions whose sole purpose was tax evasion. The court proceedings centered around nine such transactions, ranging between $390 million to $1.5 billion. Westpac has stated they may appeal the decision upon review of the judgment.
Westpac is currently liable for $918 million, $332 million of which consists of interest charged by the IRD on taxes unpaid...Read More
October 5, 2009 New Zealand Taxation
Prompted by an influx of donations for the Samoa tsunami relief, the IRD has reiterated their policy regarding donations.
Robert Russell, Commissioner of Inland Revenue, has made statements reminding those making donations to tsunami stricken Samoa that they could be eligible for a tax refund. Robert Russell believes that many of those who are making donations are unaware that they are able to claim a refund on their donation.
Further, it was emphasized that there is no longer an upper limit on the amount that can be claimed back from a tax donation. As long as the donation is lower than the individual’s annual taxable income and above $5, they would be able to claim a third of the amount donated, if receipts are kept.
The complete list of refundable charities can be attained from the I...Read More
September 30, 2009 New Zealand Taxation
The 1st of October will see an increase in the prices paid by New Zealanders for petrol.
Fuel Excise Duty (FED) and Road User Charges (RUC) charged across New Zealand are to be increased on October 1st. Prices of petrol at the pump will be 3 cents higher and RUC will increase 10% for small diesel cars and vehicles weighing up to ten tonnes, while heavy trucks will only see 3%-6% added to their charges.
According to statements by Steven Joyce, New Zealand Transport Minister, the three cent FED rise is comprised of a 1.5 cent annual increase as scheduled by the previous government and another 1.5 cents aimed at subsidizing the now removed regional fuel tax...Read More