taxmail
Issue 1 February 2010 - Prime Minister’s economic statement outlines direction of tax reform
Prime Minister John Key 's statement to Parliament outlined the key principles for tax reform for Government in Budget 2010 (the detailed policies will be outlined in May).
Read moreIssue 3 January 2010 - Q&As on the Tax Working Group recommendations
In the attached taxmail, we have tried, in simple terms, to explain what you need to know about the Tax Working Group's recommendations and how it may impact on you and your business.
Issue 2 January 2010 - Report of the Tax Working Group released
The report of the Victoria University Tax Working Group (“TWG”) – A Tax System for New Zealand’s Future – has been released. It highlights a number of deficiencies in the current system and directions for reform.
Issue 1 January 2010 - Tax Policy 2009: A year to remember?
This taxmail swaps our traditional year-end review for a collection of observations on the key tax developments during 2009.
Issue 3 December 2009 - Release of the Capital Markets Development Taskforce report
This taxmail comments on the tax recommendations of the Taskforce, which inevitably overlap with the issues being considered by the Tax Working Group.
Issue 2 December 2009 - Income splitting issues paper
An officials’ issues paper on income splitting for couples with children was released last week. This taxmail comments on the proposal and the need to consider it in relation to the objective of ensuring people earning the same income pay the same level of tax.
Issue 1 December 2009 - Tax Working Group and tax recommendations of the 2025 Taskforce
This taxmail discusses the release of the 2025 Taskforce’s report on closing the income gap with Australia and a conference to debate the issues considered by the Victoria University of Wellington’s Tax Working Group (the “TWG”).
Issue 5 November 2009 - FITC changes added to Taxation (Consequential Rate Alignment and Remedial Matters) Bill
This taxmail discusses this latest addition to the July 2009 Tax Bill. The Government today introduced a Supplementary Order Paper to the Taxation (Consequential Rate Alignment and Remedial Matters) Bill.
Issue 4 November 2009 - Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Bill
A new Tax Bill has given effect to the recent agreement between the NZ and Australian Governments on portability of retirement savings. It also introduces a number of changes to the legislative framework for issuing binding rulings, a number of other tax policy changes, and the usual assortment of remedial and drafting corrections. This taxmail comments on the key changes.
Issue 3 November 2009 - Transfer Pricing: getting it right in the downturn and planning for recovery
The Global economic recession has thrown up a number of challenges for both business and tax authorities. Tax authorities are becoming more aggressive and audit activity is on the rise. New Zealand is not immune from this trend.
Issue 2 November 2009 - Report-back of Taxation (Consequential Rate Alignment and Remedial Matters) Bill
The July 09 Tax Bill, unlike its 2008 predecessor, comes in at a relatively light 85 pages (although the Bill as introduced was only 50 pages). This reflects the relatively straightforward subject matter. We discuss below some of the key changes between the Tax Bill, as introduced, and reported back by Select Committee.
Issue 1 November 2009 - Proposed GST Rule Changes
Proposed GST Rule Changes : Sales Of Land And High-Value Assets, Input Tax Apportionment, Mortgagee Sales And Other Clarifications. The Government's discussion document, GST: Accounting for land and other high-value assets, proposes a domestic reverse charge mechanism for land, “going concerns” and high-value assets.
Issue 2 October 2009 - Malaysian FTA and customs changes
Prime Minister John Key has announced a Free Trade Agreement (FTA) between New Zealand and Malaysia. This continues NZ’s success in entering into bilateral and multilateral trade deals and expanding New Zealand’s market access into the high-growth Asian region.
Issue 1 October 2009 - Update on Government's tax policy priorities
The challenges are many, including how to bridge sizeable budget deficits for the foreseeable future while at the same time getting the tax mix right for New Zealand and achieving the Government's 30/30/30 alignment objectives. These are the issues being considered by the newly-formed Tax Working Group.
Issue 2 September 2009 - Officials issues paper on AIL, NRWT and the bond market
IRD and Treasury officials have released an issues paper on tax obstacles to non-resident “participation” in the New Zealand debt market. The preferred option is to replace the current 2% Approved Issuer Levy (AIL) with a 0% rate for certain debt securities.
Issue 1 September 2009 - New Singapore DTA
On 21 August the New Zealand and Singapore Governments signed a new Double Tax Agreement (DTA). The key changes include reductions in withholding tax rates on dividends, interest and royalties.
Issue 1 August 2009 - Further “remedial amendments” to the Taxation (International Taxation, Life Insurance and Remedial Matters) Bill
Two Supplementary Order Papers (or SOPs – Nos 34 and 35) have been released adding to the weight of draft legislation in the recently-reported back Taxation Bill. We also discuss a new DTA treaty with Singapore.
Issue 2 July 2009 - Taxation (Consequential Rate Alignment and Remedial Matters) Bill
This Bill includes some tax policy changes of note including the alignment of RWT and PIE tax rates with personal income tax rates, further time for trustees to distribute beneficiary income, and several administrative changes. KPMG will help clients work through these changes.
Issue 1 July 2009 - Alignment of RWT and PIE tax rates with income tax rates
Government has announced that it will align RWT rates on interest and PIE tax rates with marginal rates for income tax, from 1 April 2010. The changes will be included in a Tax Bill to be introduced later this month for enactment by December this year.
Issue 4 June 2009 - Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill
The Finance and Expenditure Committee (FEC) have reported back to Parliament on the Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill. This taxmail provides an overview of the key changes recommended by the FEC to the main proposals in the Bill.
Issue 3 June 2009 - New Australian Double Tax Agreement
The new DTA reduces withholding rates on dividends, interest and royalties (consistent with the reduction in rates under the recently signed Protocol to the DTA with the United States), in addition to a number of other changes.
Issue 2 June 2009 - June tax developments
Recent changes to use of money interest (UOMI) rates and the release of an issues paper on taxation of distributions from profit distribution plans (PDPs).
Issue 1 June 2009 - A taxation trifecta – stay the course, dazed and confused
KPMG's comment on Inland Revenue's compliance programme for 2009-10; our view of the recent Supreme Court decision on Ben Nevis (No.2), relating to the so-called Trinity tax avoidance case; and Never Catch a Falling Knife - KPMG's survey of global executives’ reactions to the current global recession.
Issue 3 May 2009 - Budget briefing
The Government has released its Budget, touting it as setting New Zealand on the road to recovery. As widely expected, Budget 09's headline tax news is the deferral of personal tax rate changes enacted for 1 April 2010 and 2011. The winners, as widely predicted, have been health, education and infrastructure spending.
Issue 2 May 2009 - Update on the Government's tax policy priorities
Discusses the Government’s recently announced tax policy priorities. These include measures to improve New Zealand’s international competitiveness, measures aimed at tax base maintenance and broadening; and progress on a number of existing policy announcements.
Issue 4 March 2009 - Government recommends deferral of tax changes
KPMG welcomes the Government's recommendation to the Finance and Expenditure Select Committee to defer key proposals in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill.
Issue 3 March 2009 - Release of Government’s tax policy work programme
The Government has outlined its tax policy priorities for the current Parliamentary term. KPMG welcomes the release and is pleased that the Government is willing to consider more targeted measures to improve the competitiveness of New Zealand businesses.
Issue 2 March 2009 - Business tax changes reported back from Select Committee
The Business Measures Tax Bill contains the small business tax measures announced by Government in February. The Tax Bill as reported back does not amend or expand on the initial proposals.
Issue 1 March 2009 - ASEAN Free Trade Agreement signed by New Zealand
This taxmail outlines some of the key features of the ASEAN FTA, including the reductions in tariffs on New Zealand's exports and imports to the region, and various associated requirements.
Issue 1 February 2009 - Tax changes to help businesses
The Government today unveiled a number of tax changes to help businesses (in particular small business) struggling to cope in the current economic downturn. The emphasis of the $480 million tax package is on helping businesses manage their cash flow and reducing compliance costs.
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