About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, December 6th, 5:31PM
rss
Latest Headlines

Not all offshore funds the same

A tax expert is warning investors, advisers and fund managers to be careful about using offshore funds for tax advantages.

Thursday, June 7th 2001, 6:56AM

by Philip Macalister

A tax expert is warning investors and fund managers that they need to be careful when selecting which offshore-based funds to use for tax savings.

Currently several types of funds domiciled in the United Kingdom and Australia are in vogue because they don't have to pay capital gains tax on gains.

The biggest group of these funds are UK-based unit trusts and open-ended investment companies which are promoted in New Zealand by at least six managers.

Deloitte Touche Tohmatsu tax partner Joanne McCrae instead of making a decision to use an offshore fund solely for tax purposes advisers, investors and managers need to consider how the fund is invested as that impacts on its tax status.

She says some funds don't enjoy as many advantages as others.

The distinctions can be quite complicated, but as a general rule UK growth funds have greater tax advantages than income funds, and Australian funds which have Australian based earnings are less advantageous than ones which have offshore earnings.

People also need to be aware there is a "reasonable risk" that the tax advantages these funds have could disappear through law changes.

Although warning investors about the risks, McCrae is also surprised that more managers haven't exploited the advantages of Australian based funds.

"(They) are not being exploited as much as they're possibly able to be," she told a recent superannuation conference in Wellington.

The main advantage of these funds is that they can make distributions through non-taxable bonus issues which provide a tax advantage for New Zealand investors.

Currently two managers in New Zealand, Frank Russell and New Zealand Funds Management have products which take advantage of the Australian rules.

The Frank Russell funds are promoted by ANZ Funds Management, while NZ Funds are responsible for the First Step mortgage fund sold through Money Managers.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« News Round UpSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Fee debate welcomed
    “The fees genie is out of the bottle. Well and truly. There are large parts of the industry in denial about this. ...”
    11 hours ago by henry Filth
  • Back to the novel for holiday reading
    “@billy: nope. my feeling (also a small bizman): every opportunity being taken to dip into my pockets. ...”
    14 hours ago by w k
  • Back to the novel for holiday reading
    “Just for the record Bureaucracy in NZ employs: - 2,500 policy analyst on an average salary of $90,000 - 5,000 govt...”
    17 hours ago by blogger billy
  • Fee debate welcomed
    “It's sad to see otherwise worthy fund managers caching in credibility by latching onto SuperRatings to justify their business...”
    19 hours ago by sam.stubbs@simplicity.kiw
  • Fee debate welcomed
    “The debate on active versus passive management took a turn for the worse last week with active managers, notably Milford...”
    1 day ago by Graeme Tee
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.59 4.75 4.95 5.15
ANZ Special - 4.25 4.45 -
ASB Bank 5.65 4.69 4.99 5.29
ASB Bank Special - 4.29 4.49 4.79
BankDirect 5.65 4.69 4.99 5.29
BankDirect Special - 4.29 4.49 4.79
BNZ - Mortgage One 6.25 - - -
BNZ - Rapid Repay 5.70 - - -
BNZ - Special - 4.29 4.45 4.65
BNZ - Std, FlyBuys 5.64 4.85 4.95 5.15
BNZ - TotalMoney 5.64 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 4.99 4.99 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 4.90 -
Housing NZ Corp 5.55 4.69 4.75 ▲4.99
HSBC Premier 5.75 4.19 4.19 4.49
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.25 4.70 4.75 4.75
Kiwibank - Capped - - - -
Kiwibank - Offset 5.25 - - -
Kiwibank Special - 4.19 ▲4.39 ▲4.75
Liberty 5.69 - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.10 4.85 4.99 -
NZ Home Loans 5.45 4.69 4.75 ▲5.00
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.19 ▲4.39 ▲4.75
Perpetual Trust 7.70 - - -
Resimac 5.19 4.94 4.90 4.91
SBS Bank 5.54 4.75 4.89 4.99
SBS Bank Special - 4.25 4.29 4.35
Sovereign 5.75 4.69 4.99 5.29
Sovereign Special - 4.29 4.49 4.79
The Co-operative Bank 5.45 4.39 4.45 4.79
TSB Bank 5.54 4.75 4.75 4.99
TSB Special - 4.25 4.19 4.59
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.65 4.79 ▲4.90 ▲5.09
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.65 - - -
Westpac Special - 4.25 ▲4.34 ▲4.59
Median 5.65 4.69 4.75 4.95

Last updated: 5 December 2016 7:40am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com