FPIA concerned about red tape around tax changes
The Financial Planners and Insurance Advisers Association is concerned about the likely costs of complying with any changes to how investments are taxed.
Thursday, September 22nd 2005, 6:35AM
by Rob Hosking
Submissions close at the end of next week on the government’s proposals to change how offshore investments are taxed.
Acting chief executive Ross Butler says that both the government’s proposals, and any alternatives to them, need to focus sharply on how they will work in practice.
“It’s not just an issue of tax. It’s the simple day-to-day impact on advisers and the people who are buying financial products,” he told Good Returns.
“It’s not much use having something which might seem to be good from a tax point of view but which causes massive headaches for investors and for the industry. There’s a lot of that already.”
The detail of the FPIA’s final position on the discussion document will be decided next week, although Butler says the broad direction is fairly clear.
The FPIA has compared notes with the Investment Savings and Insurance Association and other industry bodies.
The thrust of the proposed tax changes is to remove the tax –favoured “grey list” countries and make all offshore collective investment subject to a form of capital gains tax. The current capital gains tax on domestic collective investments would be abolished.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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