The week’s tax news in one handy summary.
New Zealand Tax
- This would be a good move. But I do agree with limiting it to commercial/industrial property | The Tax Working Group: Will it bring back depreciation of buildings?
- Interesting story about suggestion that art & other collectibles would be excluded from a CGT. Note what happens in the US around valuations of art | Not all that glitters may be subject to a capital gains tax
- We’ll have to wait & see but if a CGT is introduced some form of trade-off similar to what was done in 2010 when GST was increased seems appropriate | $735 income tax cut in return for capital gains tax would be ‘hypocrisy’, says National
- Worth keeping this in mind when considering inflation & CGT issue | Rental property investors get a sizeable tax advantage because they can deduct the inflation component of interest payments
- What the TWG proposes to redress this is going to be very important | The rich are getting richer, the poor are getting poorer – new research
- More special pleading? This is the case now for people transferring foreign superannuation schemes some of whom must pay tax way ahead of when they can access the funds | A low top tax rate means the majority will pay the maximum in capital gains
Inland Revenue news
- Officials’ report to the Finance and Expenditure Committee on submissions on the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill released. An absolute doorstopper…
- This includes an important amendment to the “Bright-line Test” clarifying the purchase date for land purchased off the plans & perpetual leases converted into freehold (H/T @JeneeTibshraeny)
- At 15.5% (for 2016) New Zealand’s corporate income tax take is above the OECD average
- Interesting article on international taxation here from a board member of Columbia’s central bank | “The overriding priority now is to establish an international corporate tax system fit for the digital economy”
- An amazing insight into the scale of the problem facing some developing countries. (The ratio in New Zealand varies on the target area but is at least 6:1, still a very worthwhile return).
- Just a yellow card then | Ronaldo to plead guilty to tax fraud in Madrid court