Summer reissue: In the fourth episode of Alice Snedden’s Bad News, Alice makes some inquiries upstairs about the charitable status of churches after finding out the makers of Weet-Bix have an exemption from paying tax. First published August 20, 2020. Independent journalism depends on you. Help us stay curious in 2021. The Spinoff’s journalism is … Read more
And it’s not the only existing provision the Inland Revenue could look at enforcing in the face of runaway house prices and wealth inequality, writes Terry Baucher. Thirty-one years ago this month, then-Labour finance minister David Caygill proposed a comprehensive capital gains tax including the family home. The proposal was made following the release of … Read more
Currently, investors are essentially subsidised to outbid homebuyers. Instead, why not give homebuyers a tax cut and make the speculators pay? Have you ever wanted to throw a party but worried no one would come? My wife and I thought of having a party this year to celebrate paying off our mortgage but quickly realised … Read more
Voting is under way in the New Zealand general election. Explore the main parties’ pledges at Policy.nz, but here’s a whistle-stop tour of what’s on offer in the world of the economy, tax and debt. Read more two-minute policy wraps here Under the government’s economic response to Covid-19, crown debt is forecasted to reach 55% … Read more
Let’s put tax at the core of this election. Sharing wealth is how we share care and responsibility for this land and all of the people in it, writes Laura O’Connell Rapira. It’s election season in the middle of a pandemic and global economic crisis. These are strange times we find ourselves in, and looking … Read more
The tweak to the top tax rate was hardly a surprise given NZ voters’ continuing acceptance of a distortionary system that leaves capital gains largely exempt, writes Geof Nightingale. Labour tax policy, announced last week, was pretty brief: a new 39% marginal tax rate on income over $180,000 to raise $550m of new tax revenue. … Read more
Tax can be confusing – it seems to have its own special language, and politicians have a habit of saying things quickly and authoritatively about it that might not make much sense. So let’s clear that up – and see how New Zealand stacks up. The biggest tax promise from a major party so far … Read more
New Zealand’s narrow tax base benefits the wealthy and punishes the poor, says taxation academic Jonathan Barrett – and neither major party seems to want to do anything about it. Ability to pay is the basic principle of tax fairness: people in a similar financial position should pay similar amounts of tax; people who can … Read more
Good morning and welcome to The Bulletin. In today’s edition: Labour unveils deeply conservative tax policy, concerning new information given about the Mt Roskill church cluster, and Electoral Commission investigating use of donations by NZ Public Party. For those wondering if we’d see anything vaguely resembling socialism or transformation in Labour’s new tax policy, the … Read more
It’s results season for many of New Zealand’s biggest corporates, which find themselves awkwardly announcing large profits, with the wage subsidy helping them get there. We’re now approaching six months since the dread of late March, when over the course of a few fearsome days New Zealand closed its borders, locked its population inside and … Read more
Paying tax is one of the easiest and most useful ways to contribute to society, but a centuries-old law means churches don’t have to do it. In the latest episode of Bad News, Alice Snedden asks: is it time that law be reconsidered? Watch Alice Snedden’s Bad News – Churches and Charity and other episodes … Read more
In the fourth episode of Alice Snedden’s Bad News, Alice makes some inquiries upstairs about the charitable status of churches after finding out the makers of Weet-Bix have an exemption from paying tax. New Zealand is a secular society, but “advancement of religion” is still one of the main things that define a charity. That … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Peters throws New Zealand into the fray over Taiwan’s WHO inclusion, more detail emerges on legality of lockdown, and a potentially major decision for the courier industry. The government wouldn’t frame it in such a way, but they’ve made several recent moves which indicate they’re … Read more
The government’s extraordinary measures to halt Covid-19 and support the economy have had extraordinary public support. Tony Burton argues that the hard choices about who pays for it will be far less popular. I have lived with a skeleton since the lockdown. It’s white and shiny and takes up half the space in my living … Read more
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
Simon Bridges reckons those on the average wage shouldn’t be hit by a 33-cents-in-the-dollar tax. And they’re not. Not even close. Alex Braae explains. It takes an incredible political talent to announce that you disagree with a policy setting, and have that critique be so powerful that it retroactively becomes government policy. National leader Simon … Read more
Uber’s habit of pushing tax rules to breaking point is the reason Terry Baucher refuses to use the ridesharing service. But price and convenience outweigh most people’s moral indignation, he writes. In the 2010s the true extent of aggressive tax planning practices by tech giants like Apple, Google and Facebook emerged. These behemoths simultaneously piled up … Read more
Changes to GST for overseas retailers came into effect on December 1. What do these changes mean for consumers, local businesses, and the online shopping market in New Zealand? This Christmas thousands of smart Kiwi consumers have done a lot of their gift shopping online. After all, it seems a waste of time to join … Read more
The tax department is currently chasing millions from so-called ‘High Wealth Individuals’ who won’t pay up. But when inequality is spiralling, why not set a maximum level of wealth, and simply take the rest for the betterment of all, asks Alex Braae. Drive into Omaha and you’ll barely notice the road. The tarmac throughout the … 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
Labour’s debut wellbeing budget is a solid jump to the social spending left but could hardly be described as transformational, writes Maria Slade in Wellington. With its wood panelling and forest green décor parliament’s neo-classical 1920s debating chamber has a surprisingly inviting feel. Normally a humble business reporter based on Auckland’s CBD fringe, I felt … Read more
Budget 2019: Unless we can find some way of taxing wealth as well as incomes, New Zealand is headed for an intergenerational economic meltdown, writes Grant Thornton tax partner Murray Brewer. It’s hard to get your head around how much money the government has. The slew of spending announcements in the run-up to Budget Day makes … Read more
Budget 2019: Should the collection of taxes be the point at which we talk about fairness, or should fairness be part of a completely different conversation, asks Grant Thornton tax partner Oksana Simonoff. It’s counter-intuitive, but when we talk about tax fairness we aren’t really talking about tax. We’re really talking about politics, economics and … Read more
Good morning, and welcome to The Bulletin. In today’s edition: Simon Bridges puts up bill with major tax system changes, social media crackdown call unpacked, and lower crowd numbers at main Auckland ANZAC services. This happened earlier in the week, but is worth unpacking because it would be quite a big change to the tax system. Newshub reports … Read more
A new campaign launches today making the case for a capital gains tax. Tax Justice Aotearoa’s Louise Delany and Paul Barber explain what they’re up to In the din of the current tax debate, there are voices that have largely gone unheard: hundreds of thousands of ordinary New Zealanders who believe the time is right … Read more
Remarks by a Federated Farmers leader are a boon to beneficiary-bashers, and they’re utter rubbish, writes tax expert Lisa Marriott On Monday, newsletter comments by Federated Farmers Marlborough President Phillip Neal expressing his distaste for proposed tax reforms were quoted and reiterated on Stuff. Neal didn’t restrict himself to the proposed tax reforms. Instead he … 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
SkyCity’s moves to set up an offshore online gambling subsidiary throw up a huge range of questions about just how tax should work in the digital age, writes tax consultant Terry Baucher. The news that SkyCity is voluntarily paying perhaps as much as $40 million in “tax” sounds like someone actually took seriously the remark … Read more
Literally decades worth of untaxed capital gains have created a political nightmare for the government. Is there any way they can navigate a capital gains tax through it, asks Danyl Mclauchlan? Part of the problem is that this government is trying to unshit the bed. We’ve had a deeply unfair tax system with its grossly … Read more