Showing posts from February 20, 2019

TWG Review - Maori and Tax

We all know that Maori collectively own large clumps of land in New Zealand.  Some of it more productive than others.  We all know that Maori own collectively tens of billions of dollars of assets in New Zealand.  A lot of it currently paying zero tax and rates at all.  Not surprisingly the TWG found the 17.5% tax rate for Maori authorities "appropriate" although they wanted it extended to subsidiaries! The TWG have in other words bent over backwards to exempt Maori as much as possible. The TWG remember is meant to be designing a system of tax that uses resources more efficiently.  That is why they dug into residential housing because there is a belief that your $ in providing rental housing is less efficient and not as good as your $ investing to artificially prop up our underperforming company CEO's and boards with compulsory Kiwisaver. So how did the TWG deal with Maori?  They effectively hospital passed it with many waffly references back to the politicians

TWG Review - Why The CGT Exemptions?

So today the long awaited Tax Working Group has come out with its recommendations.  The full report is out at  Volume 1  Volume 2 - CGT I wish to cover first how silly the exemptions in the report are in for Capital Gains Tax. The Report at 2a and 2b states the TWG: "recommends including gains and most losses from all types of land and improvements ( except the family home ), shares, intangible property and business assets". "recommends not including personal-use assets (such as cars, boats or other household durables )". 1. Why exempt the family home from Capital Gains Tax? If the only answer is that it is politically unsaleable then there is absolutely zero justification for the exemption.  If the next answer is "but other countries do not do it," then again there is zero justification.  The proposed rates of CGT to be your marginal rate without an inflation adjustment, are some of the harshest in the world and as a NZ residen