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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news