From the reemerging debate around capital gains tax to the increasing reach of tax authorities, Terry Baucher, writing for interest.co.nz, looks at a number of implications the coronavirus pandemic could have on the tax system. “There are decades when nothing happens and there are weeks when decades happen,” Lenin is said to have remarked, possibly … Read more
The government should go ahead and introduce a digital services tax to show the likes of Facebook and Google that their tax planning practices are unacceptable, writes Terry Baucher. Around the world tax authorities and the voting public are coming to the conclusion that current international taxation rules give digital companies an unfair advantage over traditional businesses. A … Read more
Despite the bitter disappointment of those who backed capital gains tax for a win, it’s not the only horse in the wealth tax race. Max Rashbrooke studies the form guide. If the capital gains tax were a horse, Jacinda Ardern’s announcement earlier this month was the final nobbling of an equine that, despite praise from … Read more
Along with no CGT, the Labour government is left with other tax headaches like what to do about sugar consumption, the environment, and tax thresholds that haven’t changed in a decade, writes Terry Baucher. Perhaps the Tax Working Group was fatally compromised from the outset when the taxation of the family home was excluded from … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Heavy fallout from axing of capital gains tax, cost blowout for City Rail Link, and wrongly evicted Housing NZ tenants to get debt wiped. PM Jacinda Ardern has ruled out a capital gains tax. Not only now, mind you, she’s ruled out Labour ever campaigning on it … Read more
Jacinda Ardern’s government has abandoned the idea of a capital gains tax, and it’s a victory for self-interest and disingenuous debate, writes Jesse Mulligan Well that was fun. The Capital Gains Tax “debate” (let’s call it that, though it often felt like we were only hearing from one debating team – the one dropped off … Read more
Imposing a Digital Services Tax will concentrate the tech giants’ minds on their woeful response to the Christchurch massacre, writes Terry Baucher. What to do about Facebook, Google and Twitter’s reprehensible failure to stop the live-streaming of a terrorist atrocity and the dissemination of vile images? How about a 20% Digital Services Tax, for starters … Read more
New Zealand’s tax debate is not helped by Government hiring Cullen as CGT booster, writes National’s finance spokesperson Amy Adams. New Zealanders deserve a robust debate about the taxes they pay when the Government is looking at re-engineering the tax system to reach further into their back-pockets. But the Government is avoiding debate by saying … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Tax Working Group puts environment taxes on the agenda, social worker registration bill questioned, and DHBs bleeding red ink. Sound the clickbait klaxon, because today’s Bulletin is all about tax policy. We’ll get to everyone’s favourite political football – the Capital Gains Tax – a bit further … Read more
Employee subsidies for public transport, less tax on KiwiSaver: There are some gems in the government’s latest tax report other than the capital gains distraction, writes tax expert Terry Baucher. For over 50 years a variety of tax working groups have pondered the greatest philosophical question in New Zealand tax: Should we tax all capital … Read more
Simon Bridges said the Government Tax Working Group’s call for a capital gains tax was an ‘assault on the Kiwi way of life’. That betrays a very depressing and limited view of the Kiwi way of life, says Hayden Donnell. The ink had barely dried on the Tax Working Group report and Simon Bridges was … Read more
New environmental taxes get the thumbs up, but commentators are as divided as ever on the thorny issue of a capital gains tax. The report is out, and as expected the government’s Tax Working Group (TWG) has recommended introducing a broad-based capital gains tax (CGT). While the social justice community applauds the move, business groups … Read more
‘A mangy dog’, ‘an assault on the Kiwi way of life’ and ‘yesterday’s cold porridge’: Business groups and opposition politicians are less than flattering about the proposed new tax. The business community is unsurprisingly less than impressed that the Tax Working Group (TWG) has recommended by a majority of eight to three that New Zealand … Read more
The Tax Working Group’s recommendations on changes to the New Zealand tax system have just been released. These are the main recommendations, according to RNZ. Tax the capital gain on sale of land, shares, business assets, intangible assets such as intellectual property. Tax to be imposed when the asset is sold, and levied at the … Read more
Does yesterday’s surprise announcement around the tax status of digital giants indicate a willingness to tackle the vast problems they create? Yesterday was just another Monday for the global tech giants: a select committee in the UK referred to Facebook as “digital gangsters” (not in an admiring way) for their response to privacy concerns, speculation … Read more
Property owners learn their fate on Thursday with the Tax Working Group‘s big reveal on capital capital gains tax. But whatever happens, it won’t be the housing panacea Generation Rent is hoping for, warns TOP’s Geoff Simmons. Here’s a message for young people who don’t yet own a home. In the coming months you will … Read more
The government call for a ‘revenue neutral’ package of reform from the Tax Working Group, combined with refusal to relax the Budget Responsibility Rules, reveals a failure to pursue a fairer system that properly funds public services, writes the PSA’s Erin Polaczuk There’s a lot of good stuff in the Tax Working Group’s interim report: … Read more
The Tax Working Group’s first report cautiously backs a capital gains tax, but has been stymied from the start in addressing a massive and inequitable loophole, writes Danyl Mclauchlan The government’s Tax Working Group, led by former deputy prime minister and finance minister Michael Cullen, released its interim report today. What does it say? Depends … Read more
Will the latest review of our tax system be another instance of New Zealand dancing around a capital gains tax? Tax specialist Terry Baucher investigates. The news that the Tax Working Group’s interim report due out very shortly won’t specifically recommend a capital gains tax (CGT) begs the question: Is this the fifth such group … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Māori language week starts te reo teaching conversation, Tax Working Group looking likely to reject capital gains tax, and landlords propose alternative to rental WOFs. So what exactly is the government’s te reo Māori education policy? As Māori Language Week has got underway, that’s been a … Read more
The compromises of the Labour-led government’s first budget was a sign of the consultation required in a coalition, says Grant Thornton’s Greg Thompson. MMP has bestowed a three-way coalition upon us and politics in New Zealand has now become a matter of consensus. This means that hard decisions are difficult to make and certain policies … Read more
If tax is love then New Zealand needs to show a lot more affection, writes Max Harris. The Spinoff is hosting Tax Heroes – a series covering tax, who pays it and what it means. Click here to read more. Love is a deep warmth that we direct towards other things. It’s a value we … Read more
Business consultant and Treaty commentator Joshua Hitchcock looks at the terms of reference for the new Tax Working Group and asks: how can the tax system create a more equitable outcome for Māori? The Spinoff is hosting Tax Heroes – a series covering tax, who pays it and what it means. Click here to read … Read more
The Spinoff Cheat Sheet: a clickable, shareable, bite-sized FAQ on the news of the moment. Today, what is the Tax Working Group anyway – and what is it up to? The Spinoff is hosting Tax Heroes – a series covering tax, who pays it and what it means. Click here to read more. Before all … Read more
Good morning, and welcome to the Bulletin. In today’s edition:Labour announces a full review into sexual harassment and assault in the party, nobody is that keen on America’s Cup plans, and the tax working group is getting down to business. The Labour leader has ordered a comprehensive review of the entire party in the wake of … Read more