Taxation

What Labour don’t get on tax

Time for a little history lesson.

Every now and then someone comes along that shows that you can actually stand up to politicians and jumped up officials and give them and everyone else a lesson in how to handle the twerps.

Back in 1991 Kerry Packer was summonsed before a parliamentary committee and he let rip.

Mr Packer stared down committee member after committee member, including men once spoken of in hushed tones as future leadership material, Michael Lee and Peter Costello.

“You’re either gonna have to believe me or call me a liar,” Mr Packer snarled when one committee member found his answer difficult to believe.

MPs appeared to shrink in size as the hearing went on and Mr Packer grew more aggressive.

Not much about the tax practices of Australian Consolidated Press was elicited except Mr Packer’s now infamous statement that “of course” he tried to pay less tax.

“I don’t know anybody that doesn’t minimise their tax,” Mr Packer growled as he stirred his delicate parliamentary china cup of tea with a teaspoon. “I’m not evading tax in any way shape or form. Of course I’m minimising my tax. If anybody in this country doesn’t minimise their tax they want their head read. As a government I can tell you you’re not spending it that well that we should be paying extra.”

Journalists had a field day. The voting public – possibly for the first time – felt Mr Packer spoke for all of them. And the politicians on the committee exited the hearing with their chests slightly less puffed out than they had been on entry.

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PAYE for business, an idea worth exploring

Todd McClay has announced he is looking at the possibility of PAYE for business.

Long awaited tax modernisation proposals were unveiled today by Revenue Minister Todd McClay.

A form of business PAYE, along with greater use of withholding taxes to deal with fringe benefits, interest and other investment income has been flagged.

The government is also looking at reversing the move, made in 1998, to allow most New Zealanders to no longer file tax returns.

[…]    Read more »

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Would you opt out of paying tax if you could?

mike_cunnington_1_social

The IRD’s Deputy Commissioner Mike Cunnington has said, “The vast majority of New Zealanders want to pay their tax and get it right.

This made me think.  To some degree taxes are like an insurance policy.  We get free medical care when we need it, yet we pay towards the medical care of others when we are healthy.

What would happen if you were allowed to opt-out of all taxation, but in return, had to shoulder the actual cost of living your life?   Additionally, you’re not allowed into any local park without paying and all parking costs money, even on residential streets. Read more »

Fewer on-line purchases to escape GST

At present, GST is not charged on imported digital products such as music, films and games that are downloaded or streamed from overseas and cloud software services that are hosted abroad.

Physical goods bought online worth less than $400 also generally escaped GST because the combined value of the tax and duty payable was less than $60.

Revenue Minister Todd McClay has  asked officials to look at the measures other countries were taking to collect GST-type taxes, saying they appeared to be increasing the amount of tax collected.

This is the same Todd McClay that can’t get the IRD to bring its IT project in without a 600% budget overrun.   Nice to know he’s coming for more of our money.   Read more »

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Typical socialists, they always want a subsidy

Why do socialists always think subsidies are a solution?

Keeping the Capital Connection running could cost ratepayers less than previously thought.

An internal Ministry of Transport memo released under the Official Information Act casts doubt on the amount of public money needed to keep the commuter service between Palmerston North and Wellington going.

KiwiRail has said it will cease running the train from July this year and has no plan in place for a replacement service.

For the Capital Connection to continue, the two regional councils – Horizons and Greater Wellington – need to convince the New Zealand Transport Agency to shift the Connection to a Wellington Metro service, which would mean it could receive a subsidy from the two councils and NZTA.

The Ministry of Transport report estimates the cost of the subsidy needed at about $250,000 per annum.

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Angry Andy thinks providing Iwi with tax free status is a winning move…

tax-free

The Taxpayers’ Union is querying Labour Party leader Andrew Little’s comments at Waitangi that New Zealand should consider allowing Maori to make their own laws, including tax laws, in reference to rules applicable to Native American tribal lands. Jordan Williams, Executive Director of the Taxpayers’ Union says:

“Like many New Zealanders, Mr Little may be surprised to learn that iwi do not currently pay income tax, even on profits of their commercial investments.Read more »

Lawrence Yule wants more of your money

There is a storm coming for local councillors, and for some, the clouds are only going to get darker, particularly as they start eyeing up next year’s local government elections.

Local Government New Zealand today released a discussion paper about how they can get hold of more of your money. This is all being spun on the basis that more funding is required to meet the increased demand for services and infrastructure.

Quick out of the blocks was the Taxpayers Union who pumped out a release LGNZ Push For Local Income Taxes, Fuel Taxes and Regional GST.

Jordan Williams slammed the head of Local Government Lawrence Yule saying

Mr Yule is telling the public that the goal isn’t to increase the overall tax burden, but today he released a report, not on ways to save money, but on ways to tax more.

And that’s the key point.

The Local Government Funding Review says that “the right incentives and resources must be in place to enable councils to drive growth”.   Read more »

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Will Labour run on a Financial Transaction Tax?

Labour have a finance spokesman who has never worked in the real world, and basically has very little idea about finance.

It wouldn’t be surprising if he did what the Democrats are doing now they are in opposition, and promote a Financial Transaction Tax.

To pay for the plan, the U.S. would impose what Van Hollen called a tiny fee on market transactions, of 0.1%. A Democratic aide said the fee would apply to any buy or sell transactions, and include stocks, bonds and derivatives. The plan would also limit tax deductions on CEO pay above $1 million.

So far this type of tax has only been promoted by the looney left, in the form of the Alliance and Jim Anderton, Mana, and the Greens.

5. Financial Transaction Tax

The Green Party will:

  1. Involve New Zealand with the group of countries working to agree on a tax on international currency movements, to set up a fund to provide capital for poor countries to improve their social and environmental wellbeing. This would discourage currency speculation without being high enough to impede genuine trade.

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Tax the Fat Bastard not the Fat

Celebrity Chef Jamie Oliver wants to tax sugar because sugar makes people fat bastards and costs the taxpayer.

Sugary foods risk causing a public health crisis similar to smoking and should be taxed in the same way as tobacco, Jamie Oliver has said.

The television chef said sugar was “definitely the next evil” and should be targeted because of the burden it was placing on the NHS.

He said he agreed with France’s decision to impose a tax on sugary drinks and believes Britain should follow.

The problem with this is that such a broad based tax is very difficult to administer and has had little impact.   Read more »

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Cut the corporate welfare and lower taxes before Australia

The IRD is warning the government will have to cut corporate taxes if Australia lowers theirs.

What a good idea.

Inland Revenue has warned the Government may have to consider cutting the company tax rate next year if Australia drops its rate.

In a briefing to Revenue Minister Todd McClay, the tax department said New Zealand’s aging population could result in pressure to raise taxes to pay for health and pensions.

But it said the Government would need to take into account developments in other countries when considering company tax, which was cut from 30 per cent to 28 per cent in 2011, undercutting Australia’s 30 per cent rate.

“Tax changes in Australia should continue to be monitored as they can have important implications for New Zealand,” Inland Revenue said. “A particular focus will be Australia’s White Paper due out at the end of 2015.

“If, for example, there were a substantial reduction in the Australian company tax rate, the question of whether New Zealand should follow suit would arise,” it said.

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