The Tax Working Group's final report contains close to 100 specific recommendations across a broad spectrum of New Zealand’s tax system. Generally, the recommendations are consistent with those outlined in the Interim Report released last September.
The introduction of a broad capital gains tax is the Tax Working Group’s most notable “new” recommendation, and is likely to come as no surprise to anyone following discussions in the media. In its report, the Tax Working Group has given the Government a road map setting out how a broad capital gains tax may be designed. Consistent with the Government's political commitment, any new capital gains tax would not take effect until 1 April 2021.
A number of other recommendations have also been refined further, including providing more detailed analysis of how the New Zealand tax system may be used to combat environmental challenges facing New Zealand.
Our latest Tax Tips Alert summarises the key recommendations set out in the report, and outlines what we can expect to see next from the Government.
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