Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Spotlight on “tax-free” investment products

Spotlight on “tax-free” investment products

Revenue Minister Michael Cullen today signalled that the government would move to prevent New Zealand investors using certain overseas funds to escape tax.

In a speech delivered by Associate Revenue Minister David Cunliffe on his behalf to the Institute of Chartered Accountants, Dr Cullen referred to Australian unit trusts that invest in New Zealand government stock and offer associated investment products that are claimed to be free of New Zealand income tax.

“An identical investment through a New Zealand vehicle would be clearly subject to New Zealand tax,” Dr Cullen said. “From the government’s perspective this is unacceptable and, if necessary, we will change the law to close the loophole.

“As a first step, an issues paper will be released in October for consultation on proposals to deal with this and other problems that arise under the foreign investment fund rules. One of the options canvassed will be a version of the McLeod Review’s risk-free rate of return method.

“The lesson of the last 40 years is that loopholes are not in anybody’s interest. They distort the flow of funds and, to the extent that they are effective in eroding the tax base, they simply increase the pressure on the tax rate in other parts of the system,” Dr Cullen said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news