Here is the email Revenue Minister Peter Dunne sent to a constituent bagging UK Investment Trusts.
Dear Mr TXXXX,
The short answer to your question…is vested interest. The one group of investors most adversely affected are those in UK investment trusts which currently basically pay no tax at all in New Zealand. These have been heavily marketed by financial advisers here for years for that reason, and thay have been whipping up an understandable campaign amongst their clients because the attractiveness of their product is about to cease. The sad thing is though that they have caused unnecessary fear and panic amongst many investors who will not be affected at all. By my estimate, the vast majority of the letters of complaint I have received (sic) have been from people who are below the threshold levels, and I do question the morality of those organisations that have manipulated their clients in this way to protect their own vested interest.
Yours sincerely,
Hon Peter Dunne
It gives an insight into the minister's thinking and lack of knowledge about the issue. Sure the UK listed trust sector maybe lobbying and I say good on it. If it can motivate thousands of people to write letters then it has shown it is a serious lobbying force.
To my mind it is about time the industry became more politically active.
Secondly I am aware that people with Australian based funds are also active in lobbying - and in all likelihood a bigger sector in terms of number of investors and money invested.
They too pay little tax.
As one adviser points out to me… if, as the minister says, most investors will be better off under these proposals, why is the whole industry up in arms?"
Here is the email Revenue Minister Peter Dunne sent to a constituent bagging UK Investment Trusts.