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Reserve Bank papers on income tax paid by NZ banks

Monday, 16 August 2004, 10:33 am
Press Release: Bank of New Zealand

Media release

For immediate use

13 August 2004

Re. Reserve Bank papers on income tax paid by New Zealand banks

Bank of New Zealand said today that it was confident that it was meeting all of its legal obligations regarding income tax in New Zealand.

Specifically, Bank of New Zealand said statements in Reserve Bank papers that Bank of New Zealand’s effective tax rate was 7.5% in 2003 were inaccurate and misleading.

Bank of New Zealand spokesman, Owen Gill, said:

“To draw an analogy, counting the tax paid through a bank’s imputation credits account is like saying an individual’s provisional tax payments are the total tax that person paid in a year. Generally, that’s not the case.

“The Reserve Bank has omitted a substantial further sum of taxes, tax refunds, or tax credits in its calculations regarding Bank of New Zealand.

“Notwithstanding that point, Bank of New Zealand – which is one of the larger taxpayers in New Zealand – will work with the Government regarding any policy changes that the Government might propose regarding taxation as it applies to banks operating in New Zealand.”

Ends

Bank of New Zealand

Be good with money

Bank of New Zealand (BNZ) has been a big part of New Zealand life for over 150 years since its foundation in 1861. The bank employs over 5,000 people and has more than 170 retail stores and 32 Partners business centres across the country.

Passionate about enabling a higher achieving New Zealand, BNZ works with personal, business, agri, and private wealth clients, helping them grow and make their goals a reality.

A subsidiary of the National Australia Bank Group of companies, BNZ is governed locally by a Board of Directors and strives to help New Zealanders be good with money.

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