Capital gains tax expected to change
Wednesday 17 November 2004
Some investors could be hundreds of millions of dollars better off if a report due out today sees the eventual end of capital gains tax on actively managed funds.
By The Landlord
Finance Minister Michael Cullen is due to issue a report by former BT New Zeland chief executive Craig Stobo on the taxation of investment income.Today's report is expected to be a blueprint for options to change the tax system, but is not a final decision - that may follow in next year's budget.
It is also expected to look at the tax treatment of offshore investment, with concerns that there is widespread tax evasion on offshore investments.
About $2.5 billion to $3 billion of retail funds are invested through passive funds, which do not pay capital gains tax, unlike actively managed funds worth about $12 billion. Billions in wholesale funds will be affected, but just how much is unclear.
The managed funds industry has about $40 billion under management, including unit trusts and company superannuation schemes.
Read More - Opens in a new window
Commenting is closed
Property News
ComCom warning for property trader
A property trader, who has attracted unfavourable media attention in recent years, has received a formal warning from the Commerce Commission.
House Prices
No stopping Capital price rises
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Commercial
Demand challenges for commercial sector
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
Mortgages
LVR loosening likely - ANZ
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.
