If National wins ...

[jonu]

Read this link carefully. Foreign investors can set up a trust in NZ, invest in a fund run from NZ that in turn invests only in foreign assets or financial instruments, but after JK's 'new tax rate', they'll pay no tax on that income. NZers who invested in the same fund, will have to pay tax at the PIE rate (28%). The extra advantage that hasn't changed I guess, is that foreign investors don't necessarily get their trust details bandied about, unless they are unlucky enough to be resident in a country we have a tax treaty with, and someone asks IRD in the correct way. No treaty, no details are passed on, full stop. In which case they'll probably not document their trust if they think they can get away with it, or they'll invest somewhere else.

When the tax rate was 28%, there would have been hardly any takers for these PIE funds. Then came the JK difference (NO TAX) and suddenly the money came flooding in. The settings were OK when Labour set it up, because the fair tax rate discouraged that type of investor. Maybe the trust rules need looking at too, but it's the combination of the trust rules and the new zero tax rate that constitutes a haven.

Since a trustee for a foreign trust has to produce a utilities bill and a passport to prove they are resident in NZ, but then only needs to state that the settlor is foreign based, with no further details provided, what is to stop a NZ fraudster from setting themselves up in a foreign trust here? The massive advantage is that they can then effectively invest in one of these foreign equity PIE funds, and pay no tax on the returns. As soon as the tax rate for one side is 28%, the other 0%, the obvious is going to happen.

Yes El Z, at least now you are back on topic. Your post articulates the argument about the overseas trusts well. Still no lies and fabrications.

[elZorro]

Yes El Z, at least now you are back on topic. Your post articulates the argument about the overseas trusts well. Still no lies and fabrications.

John Key said we had a tax treaty agreement with Malta the other day. Turns out we don't, but Malta was also mentioned a lot in the Panama Papers. He just made it up, then he said (when tackled on it by Corin Dann) that this was the advice he'd been given. That's either a fabrication or a lie also. Who in their right mind would give false details to the PM when they know he's going to answer questions in the House? He will never say he just made a mistake and adjust the record, he'll carry it right through. The USA, UK, Australia and another 57 countries have double-tax treaties with Malta, we don't. Maybe John was thinking about his time in Merrill Lynch. Anyway, he was wrong, he made up his own facts, as he often does.

We should now have a reporter ask JK who the staffer was that gave him the wrong facts, and then John would have to tell us another porkie.

[jonu]

John Key said we had a tax treaty agreement with Malta the other day. Turns out we don't, but Malta was also mentioned a lot in the Panama Papers. He just made it up, then he said (when tackled on it by Corin Dann) that this was the advice he'd been given. That's either a fabrication or a lie also. Who in their right mind would give false details to the PM when they know he's going to answer questions in the House? He will never say he just made a mistake and adjust the record, he'll carry it right through. The USA, UK, Australia and another 57 countries have double-tax treaties with Malta, we don't. Maybe John was thinking about his time in Merrill Lynch. Anyway, he was wrong, he made up his own facts, as he often does.

We should now have a reporter ask JK who the staffer was that gave him the wrong facts, and then John would have to tell us another porkie.

Why would he bother lying about that? Being wrong about something doesn't make it a lie. I can see you are passionate in your views El Z but this sort of stuff doesn't do you or Labour any good.

[elZorro]

Why would he bother lying about that? Being wrong about something doesn't make it a lie. I can see you are passionate in your views El Z but this sort of stuff doesn't do you or Labour any good.

He bothers to lie or make stuff up, because he's trying to singlehandedly defuse any situation he's in, without admitting any fault. He generally gets away with it, but don't forget, he's not a trader anymore. He's the PM of NZ, he has to uphold the standards of public office.

I'm writing as a concerned voter, not part of the Labour hierarchy, that's for sure. Labour ran a clean campaign in 2014, I expect they'll do so again for 2017.

Vernon Small on Key's assets. http://www.stuff.co.nz/business/indu...-of-his-assets

Some of the comments are interesting.

[winner69]

"As long as Washington is bought and paid for, we can't build an economy that works for people" says Bernie Sanders

Little should be saying "as long as Wellington is bought and paid for by Key's American bosses, NZ can't build an economy that works for people"

[Daytr]

I think National have been in power long enough to take responsibility for all matters pertaining to governing NZ.
This blaming a party that has ben in power for 8 years is ridiculous.
The fact is, it was brought to the government's attention three years ago & again a year later and try decided to do noting about these foreign trusts.
Just ask yourself why do foreign trusts exist at all?
And what business has someone in the prime minister's seat entering into a blind trust !

Still no fabrication or lies. Also Key was saying that the necessary questions weren't asked under Labour either. This is what hasn't changed. Are you saying taxing dodgy money from overseas suddenly makes it OK?

El Z your obvious frustration at Labour's inability to get any traction against Key shouldn't result in you making baseless claims in this forum.

[Daytr]

This fiasco over the Kermadecs is a complete botch up by the government.
Why on earth wouldn't they have consulted with Māori?
Are they naïve, arrogant or just plain stupid.
Not for the first time National are seen to be ruling by the seat of their pants.
Do they actually think things through? They have done so many back flips in their time in government its clear they don't.

[macduffy]

And what business has someone in the prime minister's seat entering into a blind trust !

Really? So what is a prime minister to do with his/her assets to avoid accusations of conflicts of interest involving those assets?

Oh, and Helen Clark had a blind trust when she was prime minister - according to the NZ Herald.

[Daytr]

There are plenty of fund manager options available Macduff.
And this thing about two wrongs make a right doesn't wash.

Really? So what is a prime minister to do with his/her assets to avoid accusations of conflicts of interest involving those assets?

Oh, and Helen Clark had a blind trust when she was prime minister - according to the NZ Herald.

[elZorro]

"As long as Washington is bought and paid for, we can't build an economy that works for people" says Bernie Sanders

Little should be saying "as long as Wellington is bought and paid for by Key's American bosses, NZ can't build an economy that works for people"

W69, I think this comment piece goes along with that. Very interesting observation by Tom.

What are democracy and social welfare, if not compromises accepted by the rich and powerful as a trade off to protect their stashes?

http://www.stuff.co.nz/business/opin...+13+April+2016

And more about the Antipodes firm:
http://thestandard.org.nz/can-we-trust-john-key/