No capital gains tax in New Zealand

[money tree]

Im moving back to NZ in 6 months to set up a hedge fund.

I also like renovating property but the tax laws in OZ suck. Stamp duty, CGT, land tax.......give us a break. NZ survives without all that so why cant OZ.

Theres no point dreaming about NZ no-CGT unless you LIVE there.

 

[money tree]

14. invest in NZ stocks, their tax rate is 33% and imputation credits are redeemable here (and 10% more potent)

Theres only one way for an aussie to abuse the NZ tax system.

Invest in NZ companies.

NZ company tax rate = 33%.

NZ imputation credits are acceptable to the ATO in exchange for franking credits. The trick is, you get 10% more of them (33% vs 30%)

 

[dallee]

After reading the Foreign Income Return Form Guide, I'm still not sure. There are quite a number of exemptions to transferor trust measures in Chapter 2, and Part 2 of Chapter 2 talks about distributions being assessible on income not already taxed in the hands of the trustee, but not what happens if the income is reinvested in the trust and not distributed to the beneficiary. An optimistic interpretation is that if an Aussie taxpayer is not subject to transferor trust measures and does not receive the distribution, which is reinvested in the trust, he/she is not liable to additional tax. One for an accountant or lawyer to settle I think.

Thanks for the help.

dallee

 

[RodC]

An optimistic interpretation is that if an Aussie taxpayer is not subject to transferor trust measures and does not receive the distribution, which is reinvested in the trust, he/she is not liable to additional tax. One for an accountant or lawyer to settle I think.

Yes, there are a few exemptions. My reading though is that if you originally provided funds to the trust then you're probably subject the transferor trust measures and are potentially liable for tax on undistributed trust profits.

The best approach is probably to make sure any profits are distributed to a suitable beneficiary.

Rod.

 

[KaiserBun]

Yes, there are a few exemptions. My reading though is that if you originally provided funds to the trust then you're probably subject the transferor trust measures and are potentially liable for tax on undistributed trust profits.

The best approach is probably to make sure any profits are distributed to a suitable beneficiary.

Rod.

If the arrangment is not picked up under the transferor trust measures, it looks to me that the Foreign investment fund (FIF) measures will cause some problems if the fund above $50,000.

http://www.ato.gov.au/large/content.asp?doc=/content/64063.htm

 

[RodC]

Yeah, it looks like if they can't get you one way, they'll get you another.

 

[x2rider]

hi folks ,
As one of our prime ministers , Rob muldoon once said . People who leave New Zealand and go to Australia , increase the IQ of both countries :

As for building . I am a builder in christchurch and watch some of my friends who aren't, build and sell a new house every couple of years . The area of tax on the profit is a grey area because the IRD can't cope with it .
Because they don't derive the soul income from building or are associated with the building industry, then they are pretty much free to build without tax .
You are supposed to stay in the home for a minimum of 10 years or have a good reason to sell . But this is really just a joke . You can change for schooling , Bad nieghbours , too smaller home . etc , etc ,
So if you are thinking of coming to New Zealand for a building future give me a call and I'll build you something
Cheers Martin