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

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other…

Reportedly, it was the breakdown of the relationship between the Pakistan Taliban and the Pakistan military – which for the first time, began bombing Taliban enclaves in the Tribal Federated Areas earlier this year – that led to this revenge attack on the school, which is attended by the children of the military. More>>

 

Parliament Adjourns:

Police: Phillip Smith Investigation Passport Charge

A 25 year-old man will appear in the Whanganui District Court today charged with the Passports Act offence of False Representations. The charges were laid on December 9 by the Auckland-based Phillip Smith investigation... More>>

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Maori Party: Tribunal Report Confirms Iwi Ownership Of Lake Waikaremoana

“We are pleased for the claimants that eight years after the hearing began on Lake Waikaremoana they have some closure,” says Māori Party Co-leader Te Ururoa Flavell. “Most importantly, the report confirms freshwater is a taonga and identifies the ownership rights of Tūhoe, Ngāti Ruapani, Ngāti Kahungunu, and Ngāi Tamaterangi to the lake bed.” More>>

ALSO:

Climate Performance Report - Not Achieved: NZ Government Part Of Global Climate Problem

The New Zealand Government’s position on climate change is part of the global problem that we need to overcome if we are to avoid catastrophic climate change, the Green Party said. More>>

ALSO:

NSW Police Statement: Three Dead Following Martin Place Siege

About 2.10am (Tuesday 16 December), a confrontation occurred between police and a man who had taken a number of people hostage inside a café on Martin Place. Shots were fired during the confrontation. As a result, the 50-year-old man was pronounced dead after being taken to hospital. Another man, aged 34, and a woman, aged 38, were pronounced dead after being taken to hospital. More>>

ALSO:

Gordon Campbell: On The Sydney Siege (And DHB Budget Cuts)
Whenever the authorities bring a siege situation to an end, there will be criticism if – as has happened in Sydney – any hostages are seriously hurt, or killed... In the Sydney Morning Herald this morning, columnist Peter Hartcher raises a different point – that the initial public response had been noticeably different to the agitated reactions of politicians and the media. More>>

ALSO:

Gordon Campbell: On Income Inequality, And Yo Ho Ho Christmas Songs

As 2014 grinds to a close, we probably didn’t need one more reminder of this government’s ability to stare reality in the face and declare black to be a very fine shade of white... Yet on Wednesday, there was Finance Minister Bill English trying to tell RNZ that the OECD was (a) wrong (b) using old data and (c) somehow anti-growth and in any case (d) New Zealand allegedly already had a strongly re-distributive tax system... More>>

Werewolf: Public Health - The Silent Crisis

Gordon Campbell: New Zealand’s public health system has been in crisis for so long that its failings – and deteriorating performance vis a vis other developed countries – now tend to be treated as its normal mode of being. More>>

ALSO:

Parliament Today: House Adjourns For Summer

Parliament has risen for the summer break with the Adjournment Motion agreed just after 5pm on Wednesday. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news