tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, December 3rd, 6:36PM

News

rss
Latest Headlines

AUT changes a "revenue protection issue": Cullen

Finance minister Michael Cullen says his intention to change tax rules around Australian unit trusts (AUT) is a "revenue protection issue" plus he confirms changes are likely to affect other types of offshore managed funds used by New Zealand investors.

Tuesday, October 14th 2003, 12:47AM

by Rob Hosking

The government is taking another look at tax treatment of investment flowing both in and out of New Zealand.

Finance Minister Michael Cullen, on Friday, announced the release of a discussion paper on reforming the taxation of New Zealanders’ investments in offshore equities.

One option being canvassed is the risk-free rate of return method flagged in the McLeod Tax Review of 2001.

Cullen took the opportunity, in a speech before the Institute of Chartered Accountants, to defend his approach to tightening tax loopholes.

The government took some fairly strong criticism when it announced it would be changing the taxation of Australian unit trust investments by New Zealanders.

Noting the widespread media coverage of that issue, Cullen said it is “is only one amongst a number of problems with the tax rules applying to portfolio investment in offshore equities. The options that will be presented in the issues paper are an attempt to address all the main problems identified in this complex area.”

That, and other issues, have “raised some concerns about the government’s commitment to the generic tax policy process – that we were moving towards legislating by means of press statement.”

“I can understand the reasons for the concern,” Cullen says. “But [they] involved revenue protection measures requiring a rapid response. Faced with revenue risks from widely publicised transactions that were clearly contrary to policy intent, the government chose to announce the law changes, and then to proceed to consultation before introducing legislation. In the circumstances, would the critics have preferred early legislation with no consultation?”

Other tax rules under review regarding investment relate more to money coming into New Zealand.

Overseas investors wanting to put their money into small, unlisted New Zealand firms often hit a tax barrier - they may be exempt from tax in their own jurisdictions but are subject to New Zealand tax when they sell their shares.

“This may create a problem for them because they have no access to tax credits owing to their tax-exempt status in their country of residence.”

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

« 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
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    16 hours ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    19 hours ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    23 hours ago by Pragmatic
  • DRS member or not - client care remains advisers’ responsibility
    “FAPs are members of DRS too. Substitute “adviser” for “FAP” and the story is actually a lot more accurate. If...”
    2 days ago by Aggressively_passive
  • Partners kills its matrix
    “COM has no relationship to CoFI, never did. It was self indulgent and a tiny overstep. Great way to finally weed out possible...”
    2 days ago by Backstage
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build ▼4.94 - - -
AIA - Go Home Loans ▼7.49 ▼5.79 ▼5.49 ▼5.59
ANZ ▼7.39 ▼6.39 ▼6.19 ▼6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼5.79 ▼5.59 ▼5.59
ASB Bank ▼7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One ▼7.54 - - -
BNZ - Rapid Repay ▼7.54 - - -
BNZ - Std ▼7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney ▼7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ ▼6.95 ▼5.79 ▼5.59 5.69
Co-operative Bank - Standard ▼6.95 ▼6.29 ▼6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.99 ▼6.69 ▼6.39 -
Heartland Bank - Online ▼6.99 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 ▼6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank ▼7.25 6.89 6.59 6.49
Kiwibank - Offset ▼7.25 - - -
Kiwibank Special ▼7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society ▼7.94 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank ▼7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo ▼4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank ▼8.19 6.49 6.49 6.49
TSB Special ▼7.39 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 5.79 -
Westpac ▼7.39 ▼6.39 ▼6.09 ▼6.19
Westpac Choices Everyday ▼7.49 - - -
Westpac Offset ▼7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼5.79 ▼5.49 ▼5.59
Median 7.49 5.99 5.79 5.69

Last updated: 3 December 2024 9:25am

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