The week's tax news in one handy summary.
New Zealand Tax
- Agree with Tenby Powell that better focus would be to reduce compliance costs | Govt urged to give small business a tax cut with costs piling up
- I will be making an oral submission by video on Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill to Parliament's Finance & Expenditure Committee at 9.30 today.
- Agree re subsidies for contributions but if savings are potentially locked up for almost 50 years then taxing scheme at normal rates is unfair | Tax Working Group's KiwiSaver plan expensive and unfair, experts argue
- In calculating the cost of subsidies, the tax paid by KiwiSaver funds ($250m) and on the contributions to schemes (over $500m) need to be taken into consideration | The TWG’s recommendations on retirement saving lack evidence
- An unsurprising response by LGNZ. Funding of local government is an issue which merits much more examination than it receives.
- What often gets overlooked is how both parties cynically IMO use inflation to gather more tax | @JeneeTibshraeny on whether criticisms that the Labour Party is the 'tax party' are well-founded
- An unsurprising reaction to the UK move to tax digital sales | Tech tax could be on the way
- A good analysis of the politics around tax & the (political) difficulties of the risk-free rate of return approach to taxing assets | A bach tax in New Zealand? Don't count on it
- The Taxation (Research and Development Tax Credits) Bill was introduced into Parliament yesterday. The Bill includes the proposed legislation for the Government’s R&D tax incentive package.
- “He chose to consistently align himself with anti-tax groups & advisers, adopting various schemes purely to avoid paying tax.” Interesting comment, as I'd suggest the former is protected by freedom of speech. The latter indicates he was perhaps lucky not to get a heavier sentence
- New Zealand at number 3 - no change from 2017 | 2018 International Tax Competitiveness Index
- On average VAT(GST) represents 29.3% of tax take. For comparison in NZ, GST net of $20.8 bn for year ended 30 June 2018 represented 26.8% of $77.5 bn tax revenue
United Kingdom Tax
- Big move, ramps up pressure on tech giants | UK announces 2% new tax on technology groups, which would come into effect in 2020 unless an agreement is reached on an international “tech tax” regime
- Estate agents in NZ will be within the AML regime from January.
- Ought to have been included earlier IMO | Pressure builds on UK estate agents to report 'dirty money'
- This is a response to an interesting move by the EU to blacklist jurisdictions that do not practice 'fair taxation' | Jersey is first jurisdiction to publish 'economic substance' legislation
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