Parliament

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

 

Govt To Remove Tax Obstacle to Gas Exploration

25 August 2004

Government to remove 183-day-rule obstacle to gas exploration

The government will introduce legislation to remove a tax obstacle to gas exploration in New Zealand, as part of its package of measures to boost exploration over the next five years, Revenue Minister Michael Cullen announced today.

The ‘183-day rule’, which requires non-residents from some countries with which New Zealand has a double tax agreement to leave the country within 183 days if they want to remain tax-exempt on their New Zealand-sourced income, will be waived until late 2009 for non-resident, offshore rig operating companies.

“In effect, non-resident, offshore rig operators will be exempted from paying company tax in New Zealand on their profits for the same period as the gas exploration royalty incentives announced on 14 June, from 30 June 2004 to 31 December 2009,” Dr Cullen said.

“The government recognises that the 183-day rule can create inefficiencies and detrimentally affect drilling operations. Although it may be economic for non-resident, offshore drilling rigs to be here for longer than six months, there are strong incentives for them to quit New Zealand within 183 days, before they become taxable. Their subsequent replacement then adds to the cost of gas exploration in New Zealand.

“Lifting the 183-rule for non-resident, offshore rig operators for the next five years should give a much needed boost to finding new gas fields,” Dr Cullen said.

The change will be included in the taxation bill to be introduced in November.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

PM's Press Conference: Pike Re-Entry Agency

At today's post-cabinet press conference Prime Minister Jacinda Ardern was joined by Minister Responsible for Pike River Re-entry Andrew Little to announce plans for the new agency for re-entry of the mine.

The Pike River Recovery Agency, Te Kahui Whakamana Rua Tekau ma Iwa, will be officially established on 31 January 2018 and will work with the Pike River families with the intention of manned entry of the drift before March 2019. More>>

 

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... 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:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election