Westpac tagged posts
A New Zealand union has called for the government to increase regulations on the banking sector, claiming that the country’s four largest banks paid over 220 percent of their profits in dividends while lowering conditions for workers.
The New Zealand finance sector union Finsec has cried out in protest to ANZ, Westpac, BNZ and ASB banks paying out large dividends while allegedly making jobs redundant, freezing wages and outsourcing work. According to Finsec, the combined profit in 2009 for the four largest banks was NZD790 million, while their dividend issue exceeded NZD1.7 billion.
In a media statement Finsec said that there is a gross misbalance between the amount of protection the banks have provided to their shareholders, and the amount of assistance they have provided towards New Ze...Read More
December 30, 2009 New Zealand Taxation
Five years of legal wrangling has ended in a NZD2.2 billion settlement reached between the New Zealand Inland Revenue Department (IRD) and the country’s four largest banks.
The multi-billion dollar agreement between the IRD and four Australian-owned banks, the Bank of New Zealand (BNZ), ANZ National (ANZ), Westpac and ASB Bank ,was announced in a settlement by Peter Dunne, New Zealand Minister of Revenue on December 23rd. The settlement, believed to be the largest in the country’s history, revolves around alleged tax evasion by the banks through a series of “structured financing” transactions.
Under the conditions of the settlement banks agreed to pay 80 percent of their disputed tax amount...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
July 23, 2009 New Zealand Taxation
Both Moody’s and Standard & Poor’s credit rating agencies have affirmed that they will not be changing their outlook on the New Zealand banks involved with tax payback cases.
Following a High Court decision in which BNZ bank was found liable to pay $416 million in unpaid taxes and a possible $238 million in use of money interest, thoughts have been centered around how this would affect the banking institution. ANZ bank, Westpac and the owner of ASB, the Commonwealth Bank of Australia are all also entangled in discussion with the Inland Revenue Department about owed taxes.
Moody’s Sydney-based assistant vice-president Marina Ip stated that while significant, the decision would not see the bank pay more than 60% of its expected yearly pre-tax earnings...Read More