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

 


High interest, high business tax rates penalising investment

High interest, high business tax rates penalising investment


While we do not agree companies operating in New Zealand should aggressively seek to pay the minimum tax possible in New Zealand, this is no time to be signaling we are about to tighten our company tax rules, the Employers and Manufacturers Association says.

The statement is in response to the release of an Issues Paper by Inland Revenue yesterday which ostensibly would tighten the rules on deductions claimed on interest paid in New Zealand by non-resident investors.

The Issues Paper also has ramifications for the low levels of tax collected in New Zealand on profits made here by global giants such as Google and Apple.

"The far bigger issue at stake is the urgent need to attract much more foreign investment into local productive enterprises," said Kim Campbell, EMA's chief executive.

"The larger challenge for us is how can we reduce our high company tax rate or develop other ways to make New Zealand a far more attractive investment proposition," he said.

"The focus should be on finding new ways to attract much more foreign direct investment here.

"While we support in principle proposals to plug perceived gaps in the thin capitalisation rules the overall emphasis on this just now is simply not justified.

"This is no time to be putting up possible deterrents to investment when we have many large scale infrastructure projects required, the rebuild of Christchurch, and the urgent need to recapitalise our industrial base, especially in Auckland.

"Though the rule changes proposed at first glance would place foreign equity investors on the same basis as wholly owned local investors, everyone also knows it is possible to ensure tax can be paid in the country where the tax rate is lowest, with the costs falling, including the costs of debt, where the tax rates are highest.

"The changes proposed by IRD would still allow this to occur for many global businesses.

"Global companies are constantly manoeuvring to domicile their payments where they can maximise the legitimate income from their IP and minimise their tax obligations.

"The issue the IRD should be addressing is how can we drastically reduce New Zealand's high interest, high company tax regime to make New Zealand a far more attractive place to invest while protecting the tax base."
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

TV3 Videos: Key's Flip-Flop Over Whale Oil Texts | Slater
Reaction: Greens | More
Dim-Post Link: The Very Odd Slightly Left Of Centre

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel.

Ludicrously, the public has been given exactly one day to make submissions on these major infringements of their civil liberties. Despite Finlayson’s misleading signals on RNZ that these are only stopgaps until next year’s full review of our security laws, the measures in question will not, in fact, expire until 2018.

Why the insane rush? Good question. More>>

 
 

Parliament Today:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

White Ribbon Day: Govt Resumes Sexual Violence Trial Proceedings Work

Justice Minister Amy Adams has asked the Law Commission to resume work on proposals for better supporting victims of sexual violence through the criminal process. The Law Commission will revisit its previous work on alternative pre-trial and trial processes to identify options for improving complainants’ experience in court. More>>

ALSO:

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience. More>>

ALSO:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news