So, no Capital Gains Tax to rule them all, not even a wafer-thin mint partial extension of the existing bright-line test to cover all residential investment property/holiday homes. I’m almost certainly not the only one who didn’t see that coming. The other big surprise for me is the decision to not prioritise any new environmental […]
Perhaps the Tax Working Group was fatally compromised from the outset when the taxation of the family home was excluded from its terms of reference. My view is that too often proponents of a capital gains tax default to arguing the difficulties and are therefore on the back foot from the outset. Even so, the decision to […]
In case you’ve not heard, the big news this week is the start of the final season of Game of Thrones. Oh yes, we also should hear which of the Tax Working Group’s recommendations the Government proposes to implement. Judging from media commentary over the past few weeks “Winter is coming” would not inspire as […]
Imposing a Digital Services Tax will concentrate the tech giants’ minds on their woeful response to the Christchurch massacre. What to do about Facebook, Google and Twitter’s reprehensible failure to stop the live-streaming of a terrorist atrocity and the dissemination of vile images? How about a 20% Digital Services Tax, for starters – effective as […]
SkyCity’s moves to set up an offshore online gambling subsidiary throw up a huge range of questions about just how tax should work in the digital age, writes tax consultant Terry Baucher. The news that SkyCity is voluntarily paying perhaps as much as $40 million in “tax” sounds like someone actually took seriously the remark “Well if […]
When hearing the lamentations about the purported cost and harshness a capital gains tax (“CGT”) will bring, I think of Paul1. Dying of cancer he applied to his UK pension scheme for an early payment. Paul died before it arrived, but his widow still got to pay the tax on the transfer. I am reminded […]
The year ahead in tax will be dominated by this week’s release of the Tax Working Group’s final report. The TWG is expected to recommend the introduction of a realisation based capital gains tax to close a perceived major gap in New Zealand’s tax system. The coming debate over CGT will almost certainly drown out […]
Summary of points made by Terry during this 5 minute interview [link to watch]. The trouble with Fiscal Drag as you cross a tax bracket and it’s not adjusted for inflation and so reduces your take home pay. All the tax brackets need to move up as they haven’t changed since 2010. On an inflationary basis […]
Capital gains tax is the New Zealand equivalent of the Irish Border in Brexit: An intractable issue which politicians have kicked endlessly down the road without resolution.
Terry Baucher details how the previous National-led government appears to have successfully raised at least $1 billion of extra revenue annually with little or no fanfare..