Reflections on the introduction of value added tax in the United Kingdom and goods and services tax in New Zealand

Twenty-two years ago (in 1985) the New Zealand (NZ) Goods and Service Tax (GST) Act was enacted. The Value Added Tax (VAT) in the United Kingdom (UK) has now been operational for over thirty-four years. VAT and GST are now an accepted part of taxation policy. Such controversy as remains is concerned with specific issues rather than the existence of the tax itself. However the specific form the legislation takes in each country differs and the process of introducing the tax can in hindsight be evaluated in order to analyse the rules, methods and techniques that have proved to be most efficient and effective

The implications of tax on a small business in New Zealand

Small businesses have little resources but must pay tax, so this investigation reports on the implications of tax on a small business. Literature is to be searched to identify the implications for small businesses

Tax compliance, self-assessment and tax administration

Tax compliance is likely to become even more important with developments such as self-assessment and electronic commerce. This paper re-examines the meaning of tax compliance. It finds that existing definitions are usually too narrow to encompass the topic in full and a wider definition is offered. The paper describes the purpose of tax compliance and the factors that affect the willingness of taxpayers to comply with a tax system. It discusses two different approaches to tax compliance and suggests that caution should be shown in the use of penalties and the emphasis should be on assisting citizens to meet their tax obligations. Fortunately recent developments have seen closer cooperation between tax agencies and academic researchers. A pressing task is the development of an approach that incorporates both the economic and behavioural approaches to tax compliance and a successful strategy for tax compliance must give due weight to all relevant factors and their interaction.Tax compliance; self-assessment; tax administration

Successful tax reform: the experience of value added tax in the United Kingdom and goods and services tax in New Zealand

Tax reform provides many examples of failures - where reforms did not achieve their objectives successfully and sometimes even had to be reversed. However, value added tax (VAT) in the UK and goods and services tax (GST) in New Zealand have survived successfully for many years. This paper describes the nature and brief history of VAT and GST and then assesses the factors that contributed to their success. A key factor is the process of implementation both in allowing effective prior consultation to identify possible problems and improvements as well as preparing the taxpaying public for change. It is also important that the reform was seen to be fair, that there were gains as well as losses and the change was a net improvement. In assessing how the arguments for the introduction of VAT/GST turned out in practice, it is clear that this is a robust form of taxation and has been well able to accommodate the different political pressures in the UK and New Zealand.value added tax; goods and services tax; tax reform

An analysis of how future investors and small financial institutions in New Zealand can avoid the effect of double taxation on corporate profits.

The social, economic and financial implications of corporate taxes are important for corporations because it will affect the status and operations of the business. This paper will evaluate the significance of taxes imposed on corporate income and how to integrate proper tax planning. Qualitative research method are suitable for this research in order to produce data from journal articles and published books. Some research papers might also be useful and taken into consideration to generate valuable finding to answer the objectives of this paper. The results indicate imputation system appears as an effective method for taxes in corporation, an assumption of dividend relief is favourable to decrease corporate tax rate, a rational and conclusive distribution of tax burden can be achieved using imputation system

The implications of tax on a small business In New Zealand

This report helps to provide understanding of the implications tax poses on small businesses in New Zealand. This is analysed using current literature found on internet databases using secondary research. The conclusion of this report shows that tax is costly on small businesses and is a time-consuming process for small businesses who do not hire outside accounting help. This report helps to show how the current tax system is over complicated and leaves small businesses at a disadvantage. This study also helps to emphasise how tax evasion is a major problem in New Zealand costing the country billions, and how this links to small businesses and the over complicated nature of the tax system. Recommendations following this study are that the New Zealand tax system needs to be simplified to help small businesses successfully pay their taxes. Another recommendation following the literature is that small businesses should have to spend on average one hour and make one payment per month for their compliance

Tax Compliance, Self-Assessment and Tax Administration

Revision of proposals first made in an article published in New Zealand Journal of Taxation Law and Policy, vol. 5, no. 1, April 1999, p.3-1

Successful tax reform: the experience of Value Added Tax in the United Kingdom and Goods and Services Tax in New Zealand

Working paper from Munich Personal Repec Archive. Article available online at http://www.cipfa.org.uk/thejournal/Tax reform provides many examples of failures - where reforms did not achieve their objectives successfully and sometimes even had to be reversed. However, value added tax (VAT) in the UK and goods and services tax (GST) in New Zealand have survived successfully for many years. This paper describes the nature and brief history of VAT and GST and then assesses the factors that contributed to their success. A key factor is the process of implementation both in allowing effective prior consultation to identify possible problems and improvements as well as preparing the taxpaying public for change. It is also important that the reform was seen to be fair, that there were gains as well as losses and the change was a net improvement. In assessing how the arguments for the introduction of VAT/GST turned out in practice, it is clear that this is a robust form of taxation and has been well able to accommodate the different political pressures in the UK and New Zealand

Reflections on the introduction of Value Added Tax in the United Kingdom and Goods and Services Tax in New Zealand

Working paperThe purpose of this paper is to reflect on the original process, arguments and legislative differences for the introduction of VAT in the UK and GST in NZ and to assess, contrast and compare how they have been applied and justified by subsequent events

Housing Affordability in New Zealand – Evaluation of the issue and a package of reform

Housing affordability is a major problem in New Zealand and it has escalated following unprecedented increases in residential property values over the last five years. The issue is extremely complex with a wide assortment of variables that have an influence. This paper has focused on New Zealand’s property taxation policies The tax structure in New Zealand is inappropriate as it relies heavily on taxing the productive sectors of the economy. A major hole in the tax base exists concerning the taxation of capital, particularly around property where subjective legislation and susceptible exemptions almost encourage speculation. This paper has reviewed the impact of foreign investment, a land transfer duty instrument and the bright line test on housing affordability. It is recommended that data collected on foreign investment is revised to deem non-permanent New Zealand residents as foreign buyers. It is also recommended that foreign buyers are restricted from buying existing residential property stock. The low-rate and broad based land transfer duty scheme described in this report should be implemented to correct distortionary investment choices while simultaneously generating significant revenue. The revenue should be used to significantly reduce income taxes, creating a tax switch. The main home exemption should be removed from the bright line test to create more equitable outcomes and improve the tests effectiveness. It is hoped this reform package would steer people away from the pursuit of tax-free capital gains from residential property and encourage investment in productive sectors of the economy that actually stimulate economic growth