Gareth Morgan has never met a tax he isn’t a fan of and today in the NBR he has proposed yet another tax.
There is a revenue opportunity here that New Zealand could exploit more intelligently – the $25 million of so of business for the local bean counters and form fillers is hardly a great return for the competitive advantage a New Zealand base seems to offer for these offshore administration structures. Rather than simply ban or destroy them so the business goes elsewhere, why don’t we tax them? Remember the wider the tax base the less tax the rest of us have to pay and here New Zealand is undoubtedly providing a service, so why should all the gains be privatised.
At the core of the annoyance here is the thought that yet again more (rich) people are getting away with tax avoidance. Sure, they’re not Kiwis but what the hell, we still feel aggrieved because they’re using us. I presume we don’t need reminding how extensive the list of loopholes in our current income tax regime is. Read more »