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


Another tax backdown coming from Govt

8 February 2006

John Key National Party Finance Spokesman

Another tax backdown coming from Govt

The Government is setting the stage to back down on its earlier misguided attempt to impose a capital gains tax on Kiwi investments offshore, says National Party Finance spokesman John Key.

He is referring to a speech today by Revenue Minister Peter Dunne in which he says the Government is consulting on a modified tax proposal after "almost all" the submissions on the original were "overwhelmingly negative".

The proposal is to tax capital gains on Kiwis' investments offshore. Some 80-90% of Kiwis who invest offshore do so in so-called 'grey list' countries like Australia and the US, which offer the greatest tax advantages.

Mr Key says National opposes the capital gains tax but the modified proposals could be just as bad.

"They got 900 submissions on the original proposal, which the Government now admits were overwhelmingly negative.

"Worryingly, I understand they are now proposing a cumbersome plan to tax earnings per share, to replace the proposed capital gains tax.

"The problem with this new plan from officials is that there are many ways of calculating earnings per share. It's something few people understand properly and it's very technical.

"Creating a new tax around such a complex financial measurement would be fraught with difficulty. Adding a complicating twist like this to what was already a bad idea is silly.

"National welcomes the partial backdown. It shows that Peter Dunne - in contrast to Finance Minister Michael Cullen - is at least prepared to listen.

"But there is no rationale for taxing Kiwi investments offshore at all. It simply discourages savings.

"The Government needs to get its mind off a revenue-collecting agenda and onto a simplification agenda," says Mr Key.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Supreme Court: Worksafe Decision On Whittall Pike River Prosecution Unlawful

The question in issue on the appeal was whether WorkSafe New Zealand acted to give effect to an unlawful agreement of this nature when it offered no evidence on charges against Peter William Whittall for breaches of the Health and Safety in Employment Act 1992...

The Supreme Court... has found that the decision to offer no evidence was made under an unlawful agreement to stifle prosecution. It has granted a declaration to that effect. More>>


Cullen To Chair: Tax Working Group Terms Of Reference Announced

Finance Minister Grant Robertson and Revenue Minister Stuart Nash today announced the Terms of Reference for the Tax Working Group and that the Group will be chaired by Sir Michael Cullen. More>>


Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>


Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>


Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. 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>>


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>>




Featured InfoPages

Opening the Election