While the overall tax system gets a big tick, a warning is sounded over the challenges facing Inland Revenue as administrator, given its increasing functions.
On the tax policy front, while Inland Revenue supports the present “Broad Based Low Rate” taxation framework, the BIM acknowledges that alternative tax models are available. These generally have lower tax rates on capital income.
The New Zealand Treasury, in its briefing, has highlighted the appropriate taxation of savings and capital remains an important economic issue.
If you have any questions on the above, please speak to your usual KPMG advisor, or contact John Cantin.