Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Get tax treatment right

20th November 2006
KPMG media release

Get tax treatment right or risk losing managed funds overseas, says KPMG

Failure to address the disparities between taxation of managed funds and direct investors could have a profound effect on New Zealand’s funds management industry and, therefore, KiwiSaver, says Murray Sarelius, KPMG tax partner.
Getting the tax treatment right may be central to attracting funds to locate here, he says.

A recent survey carried out by KPMG and the United Kingdom Investment Management Association found that the three biggest factors in determining where to base a fund were the taxation of the fund, the taxation of the investor and the regulation of the fund.

The survey, "Taxation and the Competitiveness of UK Funds", published in October this year, found that fund managers in the UK were shifting to offshore locations such as Ireland and Luxembourg because those jurisdictions offered something the UK did not. The survey concluded: "The tax authorities’ attitude and the overall lack of stability and certainty of the UK regime are considered to have a significant influence on the decision of participants to locate funds outside the UK."

"Fund managers need to operate in an environment of certainty, as retrospective changes to a fund’s tax treatment creates investor equity issues. This is as true of fund managers operating in New Zealand as those operating in the UK.
"The current tax changes, if properly implemented and administered, create the opportunity to make New Zealand a more attractive domicile for funds and the location of their management. This must be relevant to the current tax proposals and for KiwiSaver," says Murray Sarelius.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Retail: Supermarkets Announced As Government’s Second Market Study

The Government has today launched a market study to ensure New Zealanders are paying a fair price for groceries. More>>

ALSO:

Statistics New Zealand: Retail Sales Recover In The September 2020 Quarter

Retail sales values recorded the largest September quarter rise since the series began in 1995, Stats NZ said today. Spending on major household items, vehicles, and groceries contributed to the strong 7.4 percent ($1.8 billion) rise in total ... More>>

Kea Aerospace: New Zealand Flies Into The Stratosphere

Development has started on a solar-powered, unmanned aircraft that can fly in the stratosphere continuously for months at a time. The zero-emission aircraft will carry a suite of imagery equipment that will be game-changing for many industries, vastly ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>