Originally Posted by
couta1
...just like no need for a CGT.
Why? Let me help you out here.
In 2010 the Tax Working Group (TWG) said the following:Base-broadening is required to address some of the existing biases in the tax system and to improve its efficiency and sustainability. Base-broadening is also required if there are to be reductions in corporate and personal tax rates while maintaining tax revenue levels.
Followed by:The most comprehensive option for base-broadening with respect to the taxation of capital is to introduce a comprehensive capital gains tax (CGT). While some view this as a viable option for base-broadening, most members of the TWG have significant concerns over the practical challenges arising from a comprehensive CGT and the potential distortions and other efficiency implications that may arise from a partial CGT.
As I read this the TWG said CGT is an option if the practical challenges could be addressed.
Earlier this year Ernst & Young advised:A capital gains tax in New Zealand may be just a matter of time. The arguments around shifting investment away from housing, raising revenue and perceptions of fairness aren’t going away. And Labour and the Greens’ support across successive electoral cycles adds to that conclusion.
Start preparing now. Maximising the opening value of your asset portfolio when the tax comes in will minimise any future tax.
In my view the overhaul of the IRD systems will simplify the collection of CGT, CGT will be no more complex than our current system of taxing "certain" capital gains, and CGT is coming, sooner or later, so be prepared.
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