Taxation

NZ Herald smears against Apple have no foundation

The NBR tears apart the shoddy journalism of the NZ Herald in their constant attacks against multi-nationals.

Highlighting the potential dangers of merged media dominance, the NZ Herald went big last Saturday on accusing Apple of paying zero New Zealand tax over the past decade, a line that was quickly picked up by the likes of RNZ and Newshub.

Had Fairfax’s Stuff been part of the same stable – as proposed in its merger with Herald owner NZME – you have to wonder whether the understandably sceptical response from Stuff’s Tom Pullar-Strecker would have been part of the package.

To recap, since Apple established a New Zealand subsidiary in 2006, the local entity has reported cumulative sales of $4.21 billion. Over that time the subsidiary’s accounts show tax expenses of $33.9 million and tax payments made by related parties on its behalf of $45.5 million.

The Herald story said Apple NZ’s taxes appeared to be paid to Australia and the company had paid zero tax in this country.

The accounts don’t say that specifically but such an arrangement is possible under a tax treaty between Australian and New Zealand. Basically, the deal is that if an Australian-owned company in New Zealand is managed in Australia, then Australia gets first dibs on its tax – and vice versa.   Read more »

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Does Andrew Little know how a business works?

Andrew Little has said he won’t implement a capital gains tax, but he is going to wallop negative gearing.

But while ruling out introducing a capital gains tax on housing and raising the age of superannuation, Little said Labour would make drastic changes to negative gearing.

The current system allows people to avoid paying taxes on a property when the rental income they gain from it is less than their repayment costs on the loan.   Read more »

Show me the money

This election is looking like it will be a choice between tax cuts or increased taxes.

Steve Joyce, moving on from Minister for Corporate Welfare, is now in charge of the books and the gossip around Wellington is that he is showing some restraint…and he is also hinting at tax cuts.

The Government will deliver its election-year Budget on 25 May, with new Finance Minister Steven Joyce continuing to hint at tax cuts.

It will be the National-led government’s first budget with Bill English as Prime Minister and Steven Joyce in his leader’s old role of Finance Minister.

“Budget 2017 will seek to give businesses the confidence to keep investing and keep growing, to provide more opportunities for New Zealand families,” Mr Joyce said.   Read more »

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Winston reminds ACT they aren’t true to party principles

New Zealand First is calling on the MP, David Seymour, to ‘walk the talk’ when it comes to tobacco excise taxes given he voted with the government to increase them.

“Mr Seymour has been caught blowing his puppy whistle again,” says the New Zealand First Leader and Member of Parliament for Northland, Rt Hon Winston Peters.

“While Mr Seymour rails against the tobacco excise tax in public, designed to curry favour with the working man and women in the street, he voted with this National government to increase them. Read more »

Sam’s tax increase has sparked a crime wave

Sam Lotu Iiga was all proud as punch when he beefed up tobacco taxes.

Perhaps he won’t be so pleased as a crime wave sweeps across the nation all because of increased taxes.

Dairy owners are fortifying their businesses as the lucrative black market for tobacco fuels a wave of commercial break-ins.

Burglars have targeted up to 20 cigarette retailers – predominantly dairies and service stations – in about the last fortnight in Christchurch, making off with thousands of dollars worth of tobacco products.

Police have launched an investigation dubbed Operation Smoke as they try to catch those responsible. They are yet to make any arrests, but have some suspects.

A dairy owner, who did not want to be identified, said thieves smashed through the wooden backdoor of his business in south Christchurch, about 1.30am on September 24.

They used a crowbar to open a locked cabinet inside and stole about $10,000 worth of tobacco products.   Read more »

John Key’s government is the best Labour-led coalition we’ve ever had

Writes ACT’s Free Press

Taxes Up
National’s colonisation of Labour territory is complete.  We thought Helen Clark knew how to straddle the centre of politics but John Key has taken the art to a whole new leech-like level.  The confirmation came last week after National boasted they had made the tax system more progressive.

You Heard That Right
With Bill English safely overseas, poor old Steven Joyce was left to announce that the top 10 per cent of households now pay 37.2 per cent of taxes, compared with 35.5 per cent when the socialist Labour/Green/NZ First parties were last in power. Read more »

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Take the Whaleoil Taxation and Welfare survey

Should our taxation system lower taxes and encourage more personal responsibility by reducing welfare payments or should we continue to have higher taxes to fund our welfare system?

Click here to share your view.

After slamming the government Robbo, with his next breath, says Labour will increase taxes

As I said previously Grant Robertson knows as much about finance as Jacinda Ardern does about child rearing.

After slamming the government over tax cuts in his next breath he announces Labour will fight the election proposing tax increases.

Labour is planning to announce tax increases before the next election to help fund its spending plans but will leave the detailed work until it is in government.

Their spending promises are shaping up to be massive. Billions upon billions, and the only way they can fund that is by stiffing us with tax increases.

In a pre-Budget speech to a business breakfast on Monday, Labour finance spokesman Grant Robertson said a Tax Working Group would be set up after the election to develop ways to correct the imbalances between the productive and speculative parts of the economy.

“While we want a comprehensive review there will be some interim steps that we will announce before the election … to ensure that we have the revenue to address pressing issues, particularly in health, education and housing,” he said.

“I think it’s only fair to New Zealand we go to the next election with some sense of the direction of our tax policy. We want the Tax Working Group to do the detailed work but I think it’s only fair for New Zealanders that they see the path we are on.

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Grant Robertson knows what’s in the government’s budget (clue: nope)

Grant Robertson knows as much about finance as Jacinda Ardern knows about raising children.

Both have spouted off in the past couple of days but Robbo has declared that Labour will fight the next election with the promise of a tax working group.

The Government’s tax cut promises have turned into a farce, Labour’s finance spokesman Grant Robertson says.

Mr Robertson is accusing the Government of making a mockery of the Budget process by dangling the promise of tax cuts, but failing to include them in the Budget.

“We are not as a country in a position to be offering tax cuts when there are families living in cars and garages,” Mr Robertson said in a pre-Budget speech in Wellington today.

“I have a specific challenge to John Key and Bill English when it comes to tax cuts – if you really believe they are the right thing to do for New Zealand, cost them properly and put them into Budget 2017, rather than dangling them about in an election campaign as a promise from Neverland.”  Read more »

I don’t want hints John, I want cuts

After Bill English cancelled promised tax cuts the PM is now making hints of tax cuts in election year.

Prime Minister John Key has signalled National will campaign in 2017 on a $3 billion package of tax cuts.

Last week Finance Minister Bill English ruled out offering tax cuts in this year’s Budget and said it was not currently in the plan for the 2017 Budget either, although that could alter.

Speaking to Mike Hosking on Newstalk ZB this morning, Mr Key said tax cuts had been ruled out in the short term because it was a choice of spending $1 billion on tax cuts “to deliver very small amounts” or spending that money on healthcare and other areas.

However, he signalled National was working on a more substantial package of cuts for 2017. “We are not ruling that out for 2017 or campaigning on it for a fourth term in 2017, but having a bigger one, to be blunt, than $1 billion.” Asked how much was needed to deliver meaningful tax cuts, he said: “$3 billion, I reckon.”

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