Why hasn’t anyone looked at what CGT will do to businesses?


All the debate about CGT has been focused on if it will be charged on the family home.

This is a smokescreen…. the debate should be looking at CGT on businesses.

Cunliffe has talked about V or valuation day, but how does that work with businesses? With houses its easy:  QV have the valuations they will most probably use.

Where are the Business valuations? 

Having a small business valued costs about $5,000, which can be about 1-5% of the value.

Is Labour going to force businesses to have a valuation carried out?

Will the valuations be meaningful, or just another scam?

Will the Expert Panel carry out the valuations?

Who will pay for the valuations?

Will there be an appeals process?

How will that work?

Who pays for that?

Says a reader:

It has been 4 years since the Chch Earthquakes and there are thousands of insurance disputes related to valuation etc  , if they cant sort out the value of a few thousand houses in Chch , how could they possibly value all the businesses in NZ before a given day. When I read the policy document from Labour it made no mention of the CGT for business except that small businesses under $250 k would be exempt, all the good businesses are worth way more, but who says the V day price, its what somebody is willing to pay  that’s all.

Why can’t real news people at the NZ Herald Business Desk come up with questions like these?

Is it because they are unwilling to sink Labour even further?

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