Capital gains tax expected to change
Some investors could be hundreds of millions of dollars better off if a report due out today sees the eventual end of capital gains tax on actively managed funds.
Wednesday, November 17th 2004, 2:48PM
by The Landlord
Finance Minister Michael Cullen is due to issue a report by former BT New Zeland chief executive Craig Stobo on the taxation of investment income.Today's report is expected to be a blueprint for options to change the tax system, but is not a final decision - that may follow in next year's budget.
It is also expected to look at the tax treatment of offshore investment, with concerns that there is widespread tax evasion on offshore investments.
About $2.5 billion to $3 billion of retail funds are invested through passive funds, which do not pay capital gains tax, unlike actively managed funds worth about $12 billion. Billions in wholesale funds will be affected, but just how much is unclear.
The managed funds industry has about $40 billion under management, including unit trusts and company superannuation schemes.
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