Articles by Matthew Gilligan
The Tax Working Group has released its interim report on its review of the NZ tax system. The interim report discloses the TWG's direction as it pushes towards finalising its recommendations in February 2019.
While the report at 194 pages covers a wide range of topics within the realm of tax reform, I would like to relay some detail in regard to proposed capital gains tax that would be of most interest to those of you who are property investors, developers and business owners. Bear in mind that we are a long way away from any proposals being effective law, given that once the TWG makes its final recommendations in February 2019 the Government then has to decide what recommendations it wants to implement. In regard to capital gains tax (CGT), Labour's pre-election pledge was not to implement any such tax prior to the next election. This could mean, however, that legislation is passed prior to the election with the effective date being post-election. Suffice to say we are in early days at the moment, but there are some interesting aspects to the interim report.
In the context of CGT, a quick highlight package of the interim report is as follows:
In summary, there is a lot of water to flow under the bridge yet but it seems to me that the TWG is tending towards recommending CGT, although they do seem mindful of the huge complexity that this will entail and conscious of the need for the benefits to outweigh the consequential cost. We shall await with interest their final report in February.
All the speakers are very professional for their topic. They are all very knowledgeable. - Anon - December 2017
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.Learn More