Category Taxation in New Zealand

Possible Charity Fraud Uncovered in New Zealand

June 15, 2017 Taxation in New Zealand

Tax CrimeWELLINGTON – Investigations by New Zealand officials may have unveiled a multi-million dollar tax fraud scheme using charities.

The Department of Internal Affairs of New Zealand has released a report, following an official information request, showing that local charities may be being used for international tax evasion or money laundering.

The report centres around Operation Timepiece, an investigation conducted by the Department of Internal Affairs on three entities registered in New Zealand as charities.

The three entities have made some donations in New Zealand, but, according to records, funnel the majority of their funds into a single entity registered in Switzerland.

The three entities have now been de-registered, but the professionals behind their organisation and operations claim ...

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Bed Tax Coming to New Zealand

June 1, 2017 Taxation in New Zealand

Hotels in AucklandAUCKLAND – Tourists coming to New Zealand’s biggest city will be forced to pay taxes to help the city host concerts and sports events.

On June 1st the Finance and Performance Committee of Auckland, New Zealand, voted on, and approved a proposed bed tax to be levied on retail accommodation in the city.

The new tax will be paid by businesses in the accommodation industry, at a rate of NZD 3 to NZD 6 per night per customer for hotels, and NZD 1 to NZD 3 for motels.

The tax is intended to raise as much as NZD 135 million per year, with the funds earmarked for payment of the costs associated with hosting international events in the city.

The tax was passed with 11 votes in support and 8 votes in oppositions, however two of the council members abstained from voting.

The tax has been a long-d...

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New Zealanders Payout $1.5 Million Tax in Life

May 22, 2017 Taxation in New Zealand

WELLINGTON – New Zealanders are spending 15 years per household to pay off their tax obligations.

On May 22nd the New Zealand taxpayer advocacy group the Taxpayers’ Union published a new report showing that an average household in the country pays as much as NZD 1.48 million in tax over the course of its lifetime.

The total amount of tax paid is calculated based on an adjusted salary of NZD 98 818.

Based on the calculations, the average New Zealand household pays out approximately 15 years of earnings in the form of taxes.

For the average family, the total amount of taxes paid is made up of approximately NZD 826 000 in income taxes, NZD 375 000 in GST, NZD 121 000 local council rates, and NZD 40 000 petrol taxes.

Any households that fall significantly far from the average earner, eith...

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New Zealand Wont See Water Tax

March 20, 2017 Taxation in New Zealand

Water in New ZealandWELLINGTON – Bottlers and exporters of premium New Zealand water will be breathing a sigh of relief, as the Prime Minister explains why they will not be paying a water tax any time soon.

In a television interview on Match 20th the Prime Minister of New Zealand explained that the government would not soon see the implementation of a tax on the bottling of water to be sold outside of New Zealand.

Recently, New Zealand has seen an increase in public outcry and media controversy regarding the issue of water being collected from New Zealand springs and lakes, and being sold overseas, as the businesses which win the rights to bottle the water, only pay a minimal price for the privilege.

The controversy has led to the suggestion that businesses which bottle water and sell it overseas should be...

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Tax Collections May Taper in New Zealand

March 15, 2017 Taxation in New Zealand

New Zealand Tax CollectionsWELLINGTON – As less tourist flock to New Zealand, and as the country’s housing boom dies down, the national government looks like it may soon see a drop in tax collections.

New Zealand’s continued higher-than-expected tax revenue results may not continue into the foreseeable future, according to information detailed in a new report released by the New Zealand Treasury.

Over the 12 month to December 2016, the tax revenues of New Zealand grew by 8.5 percent compared to the same period in the previous year.

The growth in tax revenues also outpaced the growth in the national GDP level, and similar growth levels have been seen over the last two years.

The primary drivers behind the higher-than-expected growth have been rises in the collection of GST and corporate income tax, and higher than...

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