The issues facing the New Zealand tax system are complex. They include the sustainability of our corporate and personal tax bases, as both highly-skilled New Zealanders and companies are internationally mobile, and the integrity of the tax system - the ability to structure around high personal tax rates and the under-taxation of certain investments and activities.
At the same time, the solutions are not straight-forward. Alignment (of tax rates), GST, capital gains tax, land tax, RFRM, and depreciation are some of the options the TWG has considered. How these options can be made to work together, as a part of a sustainable and coherent reform package, will be the taxing issue for Government.
If you have any questions on the above, please speak to your usual KPMG advisor or contact: