Parliament

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

 

Tax change aids venture capital investment

29 March 2004 Media Statement

Tax change aids venture capital investment

A tax bill aligning New Zealand’s venture capital tax rules more closely with those of Australia was introduced to Parliament today.

Revenue Minister Michael Cullen said the change should help New Zealand compete more effectively with Australia for venture capital.

“The amendments target foreign investors who are tax-exempt in their own countries and therefore cannot claim or make use of credits for any tax they pay in New Zealand.

“They will be exempted from New Zealand income tax on the sale of shares in certain unlisted New Zealand companies. The change will apply to foreign investors who are resident in most of the countries with which New Zealand has a double tax agreement and who are tax-exempt at home.

“The exemption will also apply to foreign funds from countries representing our main investment partners that invest on behalf of foreign venture capital investors who are generally tax-exempt in their own countries.

“Other important changes in the bill include amendments to the legislative framework governing the resolution of disputes between taxpayers and Inland Revenue, to improve the process for both parties.

“The bill also introduces a 6.7 per cent rebate, or ‘discount,’ to encourage people who begin receiving self-employed or partnership income to make voluntary payments of income tax in their first year of business, rather than wait to pay tax on year-one income in year two. The change is designed to reduce the financial strain that individuals in business face in their first three years of business,” Dr Cullen said.

Information on these and other matters in the bill can be found in the commentary on the Taxation (Annual Rates, Venture Capital and Miscellaneous Provisions) Bill, available at www.taxpolicy.ird.govt.nz.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop 3.0: How You Can Help Scoop’s Evolution

Entering into its third decade of operation, the Scoop news ecosystem is set to undergo another phase of transformation and evolution.

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

 
 

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

United Future History: "All Good Things Must End"

'We’re extremely proud of what we’ve achieved over the past 15 years, working alongside the government of the day, both National and Labour.' Mr Light told members on Monday. More>>

Gordon Campbell: On The TPP Outcome, And The Hobbit Law

Somehow the Trans Pacific Partnership trade deal has come lurching back from the dead – and as predicted in this column last week, the member countries gathered in Vietnam have announced a deal in broad principle, shunted aside until a later date the stuff on which they don’t agree, and declared victory. More>>

Agreeing To Differ: Greens Maintain Opposition To TPPA
“The Green Party has long opposed the TPPA. The new proposed deal, which came out of the weekend’s talks, still contains key ISDS concessions to corporations that put our democracy at risk, so our position remains the same,” said Green Party trade spokesperson Golriz Ghahraman. More>>

ALSO:

Monitoring Report: A New Chapter For Children’s Rights In New Zealand?

The Children’s Commissioner is calling on the country to embrace children’s rights to ensure their overall well-being. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election