Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Institute Welcomes Tax Report Recommendations

MEDIA RELEASE : Wednesday 24 October 2001


The Institute of Chartered Accountants has welcomed the Tax Review 2001 Committee's confirmation of many of the recommendations of its interim report.

"The Institute is pleased to see the recommendation that the top personal tax rate should be reduced to match the company rate, with less
progressivity but more targeted assistance at lower income levels", Chris Abbiss, Chair of the Institute's National Tax Committee, said today.

"We support the suggestion of a seven year 'holiday' on foreign source income of new migrants, and also a $1 million cap on personal tax charge - NZ would be better off getting $1 million from a person who would otherwise pay more tax, but to Australia.

"We also agree that the corporate tax rate should be kept close to (and in our view no more than) that of competing jurisdictions, such as Australia's 30%. We do, however, have some reservations about the competitive implications of granting a much lower corporate tax rate to non-resident owned companies.

"We are pleased to see the strong rejection of new taxes, such as taxes on capital gains, wealth, estates and various financial transactions. As noted in the Report, such taxes are not superior substitutes for GST or income taxes, and do not meet the objectives claimed by supporters. Additional problems with taxes on financial transactions include harmful transitional and cascading effects."

Mr Abbiss said the Institute was disappointed that the Review Committee had not made a firm recommendation to defer, until repatriation, NZ tax on active offshore earnings, as this was now the international standard.

"The Institute was disappointed and concerned that when the original report was first released some aspects of the tax debate were stifled because of excessive focus on the housing tax issue. That outcry has been heard by the Review Committee, which explicitly has not recommended that the government take the proposal further at this point.

"We sincerely hope that the release of this report will now be followed by open debate."

..... ends


Chris Abbiss Chair, National Tax Committee Institute of Chartered Accountants of New Zealand Tel: 021 630 528

Jeff Owens Tax Director Institute of Chartered Accountants of New Zealand Tel: (04) 474-7860 Tel: 025 818 635

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


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>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news