I don't have a problem with CGT in NZ. But I do have a problem when CGT erodes and discourages investment in NZ. Without investments, you lose jobs, it's that simple. If you disadvantage those that have the $, then you will have what many other nations experience, a 'flight of capital' (Brexit is a good example)
We're not trying to encourage foreign trusts in NZ. What we don't want is to signal the global investments community that NZ is anti-investment and pro-tax. Every OCED nation has foreign trusts laws and it was about time NZ tax laws had aligned to their level. But to talk of a CGT that is not aligned to how other nations treat CGT?Quote:
Does NZ really want to encourage people with foreign trusts, on the whole they sound like a bunch of rotten, selfish self-centred scumbags should we really be helping them. Let them flee somewhere else.
Foreign capital investing that involves building or improving industry/assets in NZ is no doubt good for the country, not so sure if buying existing businesses and farms and taking the dividend offshore is a good idea or even worse thin capitalisation(see link below).
http://www.stuff.co.nz/business/opin...carpet-rollout
Also you have to stop thinking NZ is a major player in the global scheme. It has no real currency controls so $ can flow freely in and out. When you have something like a CGT that thwarts investment in NZ by foreigners, then it will impact everything. Your Kiwi Saver, your economy, jobs, nothing will escape, and sadly it translates to a lower standard of living. Anotherwords, do you understand how dependent NZ is on foreign trade and investment? Just because farmers can sell more product at lower exchange rates (makes them more competitive), on the other hand you have to import goods that NZ doesn't produce AT THE higher cost (as most trade is based in USD). Also how do you produce an income generating asset in NZ when locals alone don't have the funding? You realise that when the NZ gov't privatised it's assets, a lot of it went to foreign ownership. Ever questioned why?
Again IMO, a very weak NZD is a drop of standard of living in NZ. Again quite simply because NZ is a very small country and is more dependent on international trade than what large nations can simply produce their own products. NZ will never be in that position.Quote:
Also came across a bit of history regarding this company while looking for the chalkie article.
http://www.stuff.co.nz/dominion-post...lingtons-power
I don't buy the capital flight threat, worst case scenario income generating assets and land become more affordable to NZers and a declining NZ dollar makes our productive exporters more competitive.
I think you can always put a negative or positive spin on something.
As I said before, tax concessions are nothing new and almost every OCED nation has it. I do not believe it's an excuse that NZ needs to have a simplified tax roll for the sake that "the avg NZ person can't understand what concessions are and who don't believe accountants know what they're doing". It's a poor excuse. Not trying to be anti-CGT. It's just that the world has become a small place and if NZ sends the wrong message, the general population as a whole will suffer.