The week’s tax news in one handy summary.
New Zealand Tax
- More on inflation and thresholds. Worth remembering that in 2005 a similar proposal by then finance minister Sir Michael Cullen was dismissed as “chewing gum tax cuts” | Proposed changes better, but ‘what about the extra billions already paid?’
- Interesting take from Brad Olsen on the threshold indexation issue. As he also notes the TWG “is potentially a good catalyst for getting us, as a country, to have a much deeper conversation about tax” | Who shoulders the burden of New Zealand’s tax bill?
- Er no. Statistics from Australia, the UK and the US all show the biggest proportion of gains are declared by the wealthy | The reality of capital gains tax is that the lion’s share is paid by the middle
- Tom Pullar-Strecker with the TWG’s findings on the topic | Wealthiest Kiwis would pay vast majority of capital gains tax
- First impression is that this is a good rough & ready approach from @NZInlandRevenue | Simplified tax for short-stay accommodation providers proposed
- The TWG was cautious about such a tax in its interim report. But things are moving fast in this space so it will be interesting to see its final position
United States Tax
- Relative to yield the compliance costs for FATCA are unjustifiably large. Furthermore it’s a non-reciprocal agreement (although the IRS does share information on request) | Taxing times for US nationals abroad
- Bracket creep is also an issue in Australia. Interesting detail about indexation of alcohol, tobacco and fuel taxes. | The Kiwis and Canadians are beating us at tax reform
I follow interesting tax news stories from around the world and share them on Twitter.
These are a selection of our best tweets from the previous week.