Category Taxation in New Zealand

NZ Cracks Down on Tax Avoiders

December 8, 2017 Taxation in New Zealand

New Zealand tax rulesWELLINGTON – New Zealand may soon step up against large multinational businesses arranging their affairs to skip paying taxes in the country.

On December 8th the Taxation (Neutralising Base Erosion and Profit Shifting) Bill was introduced into parliament in New Zealand.

The bill will, if approved, help control the occurrence of tax evasion and avoidance committed in New Zealand by multinational companies.

The newly proposed rules are based on similar rules enacted and proposed around the world for combating tax evasion and base erosion.

The key points in the bill revolve around aggressive tax planning and the misuse of intercompany loans, hybrid mismatches, artificial arrangements, and illicit transfer pricing practices.

It is expected that if the new rules are implemented, they will lea...

Read More

NZ Tourist Tax Needs Better Planning

December 5, 2017 Taxation in New Zealand

tourism NZWELLINGTON – Taxes collected from tourist should flow to regions which attracted the tourists to New Zealand, says tourism group.

In a press release on December 4th the advocacy group Regional Tourism NZ called for “a coordinated national discussion on tourism tax”.

The newly elected Labour government in New Zealand has previously campaigned on the promise of a NZD 25 tourist tax to be paid by each international visitor coming to the country.

However, despite the campaign promises, there have not yet been any confirmed details of how the tax will work, and whether the proposed rate will be maintained.

It was explained in the press release that the growth of tourism in New Zealand is having a disproportionate benefit across New Zealand, with many regions benefiting greatly from risin...

Read More

Petrol Tax Will Fund Rail in NZ

November 22, 2017 Taxation in New Zealand

petrol taxAUCKLAND – Drivers in New Zealand’s biggest city will soon pay more for petrol, with the extra cots being used to pay for a rail network in the city.

The government of New Zealand will soon implement the first regional fuel tax in the country, according to a statement made by a spokesperson for the national Minister of Transport Phil Twyford.

The Minister of Transport indicated that a tax of NZD 0.10 per litre will be applied to the sale of petrol in commercial petrol stations anywhere in the Auckland region.

The current mayor of Auckland Phil Goff has called on the government to pass the revenues from the tax to the Council.

The funds passed to the Council would be used to pay for improvements to the city’s transport infrastructure.

In particular, the tax would go towards paying for ...

Read More

New Zealand Confirms GST on Online Shopping

November 15, 2017 Taxation in New Zealand

129624134WELLINGTON – All online purchases in New Zealand will soon be liable for a 15 percent tax.

The new Revenue Minister of New Zealand Stuart Nash has confirmed that the country will start collecting Goods and Service Tax on all online purchases.

Currently, any online purchase made from an overseas retailer are not levied with the country’s 15 percent GST, if the purchase price is less than NZD 400.

The tax is typically collected at the border, as the goods come into the country.

The government now hopes to enact a tax on all goods coming into the country, regardless of the price.

The new measure is meant to level the playing field between local retailers who have to pay the tax, and foreign businesses which can ignore the charge.

Retail NZ, an advocacy group for businesses in New Zealand,...

Read More

Sugar Taxes Aren’t the Full Solution

November 8, 2017 Taxation in New Zealand

Tax on sodaWELLINGTON – New Zealand needs to look beyond a simple sugar tax, and weigh up a tax on all processed foods.

On November 7th Exercise NZ released a media statement, saying that taxes on sugary drinks is only a part of the problem of addressing the nation’s obesity problem.

It was noted that some countries have already begun implementing a tax on sugary drinks, however, the measures have only had a limited effect on drinks consumption.

The reason for the lack of success was that sugar-sweetened beverages are relatively cheap, and adding a small tax to their sale still leaves the drinks as a cheap product.

It was suggested that instead of a singular tax on one type of food item, a series of taxes should be applied to a number of processed foods, with the collected funds to be used to pay...

Read More