IRD unveils solution to AUT issue
Sunday 18 April 2004
The IRD has backtracked on previous indications that the proposed AUT solution would be narrow and designed to deal only with the “mischief” of New Zealanders investing tax free into NZ government stock.
By The Landlord
The full extent of official determination to hit perceived tax leakages from Australian unit trust investments was unveiled to the financial services industry last week.Inland Revenue officials handed their proposals to the industry on Wednesday, giving them until 5pm Friday to respond.
The proposals come as fresh questions are asked as to just how much tax leakage there really is from AUTs.
Investment Savings and Insurance Association chief executive Vance Arkinstall could not divulge the details of the IRD’s proposal, citing a confidentiality.
However he says the IRD’s proposals go too far. The main concern from officials – and public comments from Revenue Minister Michael Cullen seem to support this – appears to have been New Zealand investments in AUTs which then invest in New Zealand debt securities, in particular, New Zealand government stock.
Read More - Opens in a new window
Commenting is closed
Property News
Major industrial development powers on
It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
House Prices
House price drops are short-lived - Alexander
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Commercial
Resilience needed in face of change
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgages
Mortgage lending slumps to record low in April
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.
