Editors choice comments
"I'm open and talk to Koru lounge members all the time"
Koru Lounge memebrs, huh... A real man of the people, then.
LOL "people from all walks of life approach me in the koru lounge" he has lost touch for real with middle NZ
Taxing the number of windows in dwellings would also be a broad based, sensible suggestion for serious consideration.
by: Mark L
Interesting to see the frank insight of experts, presumably little knowing then just how soon it might be revealed as foresight:
The IRD's 2014 report said the foreign trust sector in New Zealand had attracted criticism internationally "along the lines that we are a tax haven", adding that "the perception that we might be a tax haven is damaging to New Zealand's 'clean' international reputation", and that "this can only get worse in view of future developments by the OECD" against which NZ would be judged to higher standards "redefining what the OECD sees as an unacceptable tax regime."
So a lobby group backed by the PM, bullied the IRD so they would not look into suspected naughtyness with our foreign trust rules. Very poor form in my opinion and reveals JK does not have NZs best interests at core.
by: Camel's back
John Key has gone over the top of the popular curve and is on the downward slope. He will be surprised how steep the slope will get. The things he used to get away with easily will now each be a nightmare.
It is good that Stevens of the RBA has at least addressed helicopter money, and admitted that the only reason he can think of not to do it is that it would be difficult to turn it off. Better he says, for governments to borrow from financial markets to fund economic activity.
So, to start with he has no good reason against helicopter money, when demand is low and inflation negligible. I would accept that if tax cuts are given, they can be difficult to turn off, but regardless of whether they were funded by government borrowing or printing. If it is spending on infrastructure, then that is...by: Stephen L
But I'm sure inflation is just around the corner according to the RBNZ, just as it has been for the last 7 quarters.
Every bubble has two components: an underlying trend that prevails in reality and a misconception relating to that trend.
Lots of property investors on these boards can't separate fundamentals from fiction and many more on these boards who damn well know there is a bubble but passionately argue it doesn't exist.
I often try to buy into an overpriced asset class when large bubbles are emerging - it just adds more fuel to the fire. The returns can be superlative but if you aren't too greedy, make a staged exit, and good luck to everyone else. Buying into a bubble is totally rational if you...by: Keyser Söze
Use of money interest has always been a rip off. You can have a few really good earning months just before the end of the financial year and you were supposed to predict that and pay tax for it. Paying use of money for money you never knew you'd have. It is a good idea to do away with the crystal ball gazing rubbish.
Still no fix for major issues relating to Comrade Key's central housing supply policy.
Sadly, yes. Pity John Shewan. He has to read lots of rules somehow magically to assess the impact on NZ's reputation. Simpler terms of reference might have suggested that he just watch Spanish TV, read the newspapers in Malta, and Google how the rest of the world actually is referring to New Zealand's getaway vehicle manufacturing industry
Such a cynic.
National have been in power for nearly a decade and have powerful levers over both supply and demand - and they use them - can't you tell???
On the supply side just look at how they've reformed the RMA. And rather than spend 7 years threatening to take power from Auckland council they did it! and weeded out NIMBYISM and got Auckland building again. And how they took no regard to allowing intensification in their very own neighborhood - so selfless. And their crack down on land bankers with a land tax oh josh it was just so swift.
And on demand look how they addressed the...by: Keyser Söze
Of Emperors and clothes .. when on earth is our Government going to recognise this is a crisis, and acknowledge the reality ?
Almost every developed and or OECD country with this problem has taken steps to prick housing bubbles in the past year ( trust me ........google it ) . Canada , Singapore , the Bank of England .........to name a few
Our Government is either drunk or in a coma or fallen asleep at the wheel .
Its perverse, that right now , I could not afford to buy my home in Greenhithe with an 80% mortgage from a bank .... I don't earn enough, and I am a partner in a...by: Boatman
Your move RBNZ...
Require banks to hold more capital against housing loans / investor housing loans? Decrease the LVR on the speed limit from 80% to 70% given the increased likelihood of a drop in the housing market being over 20% of house values? Debt to income ratios? Ban interest only loans?
No matter what the RBNZ does though, it is really up to the government to fix it. The RBNZ can only have an impact when the person buying is borrowing from NZ.
I'd like to see at least one of: 1. stamp duty on investor house purchases, 2. a tax (or removal of benefit) on unoccupied houses (i.e. flat...by: sferris
NZ's reputation was treated as a joke in Spain's 6pm TV news on Saturday, and in Malta the PM's facing mounting calls for resignation swirling around NZ offshore trusts. Part of the issue is that our old-style form of offshore trusts is tarnished with the reputational baggage of the traditional tax haven type structures now coming home to roost. Getting out of the business entirely with complete beneficial ownership requirements and/or creating a new model may be potential alternatives to explore.http://www.interest.co.nz/opinion/80991/ron-pol-says-tax-haven-misses-po...
Agreed (again) Penguin. Salacious as the current revelations may appear, even if all the MossFon papers were available, it is still only the tiniest tip of the iceberg.
Nor just because MossFon represent only 5% or so of the market, with a few other big players and then tens of thousands of other legal and accounting firms in nearly every country that also set up such structures.
Also because company incorporation firm records won't show the vast majority of transactions undertaken by their corporate structure creations. MossFon may or may not be complicit or wilfully blind in some of it,...
Hmm, is this a complicated way of saying "It's not fair" when their business model cannot compete? They seem to have a good model giving what look like safe returns of 4% to 8%. It looks good compared to bank deposits.
Harmoney give 9% to 20% for a higher default rate. 20% expected return on Harmoney less 2% expected default rate still gives 18% before fees, taxes and inflation. It all hangs on whether the expected happens, of course.
Personally I think P2P is the best thing since sliced bread for about a hundred and fifty reasons, some of which are mentioned in the article.
Anyone in the Offshore Trust industry must be in a state of paranoia whether it be beneficiaries, bankers, lawyers or trustees.
Unbelievable. National seriously cannot man up to anything and admit it's their fault. I thought being able to man up was a desirable trait.
Brilliant piece thanks Bernard. I never thought I'd see the day NZ would become a tax haven, money laundering hotspot for criminl proceeds and a nefarious banker. We have sunk very low, to have politcians condoning and faciltaing these crimes
Have a look at that foreign trust disclosure form...that is laughable. I need to provide more information when I order my takeaway on a Friday night.
The whole problem is disclosure. I don't have a problem with foreign trusts existing., The issue is that we do not collect any meaningful information about them, their sources of income, their assets etc. We do not know where the money has come from and we are unable to share anything useful with the jurisdiction that the trustee resides in so we can't even assist any other tax officials from another country put together a complete picture. This...by: head_down_bum_up
"New Zealand doesn’t tax the non-New Zealand sourced income of a foreign trust." my first question is WTF not? Does this mean a foreign company operating in NZ under the auspices of a trust can avoid paying tax here? Which idiot thought this was reasonable? "This is on the basis that it wouldn’t tax the non-New Zealand sourced income of someone who is not resident in New Zealand." The second question is, is this based on a presumption that tax is paid in the country of origin of that income? If not then this is very, very clearly a money laundering and tax avoidance facility. If it is based...by: murray86
This is great news, but it should have been 51%. KB has been a distraction that NZP could have done without. The initial set-up costs and ongoing capital reserve requirements have been a drain on the Government's finances.