Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Businesses Buck Trend On Wanting More Tax Guidance

News release

23 May 2013  

New Zealand Businesses Buck Trend On Wanting More Tax Guidance

New Zealand businesses don’t want as much tax guidance as their overseas counterparts, according to the latest research from the Grant Thornton International Business Report.

It reveals that two-thirds (68%) of businesses worldwide would like more tax guidance, even if this provided less opportunity to reduce tax liabilities across borders. Only 47% of New Zealand businesses would want such advice.

The New Zealand figures are more in line with the North American region with just 54% in agreement, compared with 67% of Asia-Pacific businesses and 75% of eurozone businesses.

Geordie Hooft, tax partner, Grant Thornton New Zealand, said that this is a surprising result given the greater level of scrutiny being placed by tax authorities worldwide on the shifting of profits from country to country for a tax advantage.

“In New Zealand, the recent high-profile examples involving Amazon, Google and Starbucks have certainly sharpened public opinion as to what is acceptable tax planning. You would think the majority of business leaders would also welcome more transparency,” said Hooft.

“The lack of certainty around the Courts’ new approach to interpreting what constitutes tax avoidance may be perceived by some as bringing greater risk of being targeted for investigation.”

New Zealand business leaders were somewhat less critical of our tax laws and policies than business leaders from around the world. Fifty per cent said these were geared to stimulate economic growth compared with the global average of 31%.

“It seems that New Zealand businesses are reasonably happy across the board, with 60% believing our tax system encourages compliance against a global average of 37%, and 54% believing that taxpayers are being charged correctly compared with a global average of 28%.

“The other interesting finding was that 80% of New Zealand businesses were not planning to make their tax affairs more transparent to investors, stakeholders and the general public over the next 12 months against a global average of 53%.

“Much of this could be put down to businesses not wanting to disclose their tax strategies, particularly around transfer pricing,” he said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news