More Work Needed Yet To Pay Tax
22 April 2005
More Work Needed Yet To Pay Tax Says Staples Rodway
International accounting and tax experts Staples Rodway says the Business Round Table is correct to point out that on average New Zealanders work for the first few months of the year just to pay their annual tax bill, but says the situation is even worse than the Business Round Table believes.
The way Staples Rodway does the sums; the average New Zealander has got a month to go yet before he or she earns a single cent for themselves - until May 24 in fact.
Last year, Staples Rodway also declared May 24 to be Tax Freedom Day.
"This year, we have calculated that the average New Zealander will work to May 24 just to pay their tax for the year, said Roger Thompson, Tax Director for the company's Auckland office.
Using internationally accepted methods Staples Rodway calculate Tax Freedom Day by estimating the nominal GDP growth for the year ended March 2005 and tax revenue data for the month of March 2005, which includes GST payments.
Mr Thompson says that the method they use to calculate New Zealand's Tax Freedom Day is also used to calculate the UK's, USA's and Australia's.
"New Zealand's Tax Freedom Day continues to occur around the same time as Australia's, only slightly earlier than the UK and considerably later than in the US."