Cooper admits push might be too late to fix the economy
The Federal Government has promised to cut corporate tax rates frjarvees.comom 28 per cent to 25 per cent over the next four years, and as part of this it will introduce legislation to change the way companies pay tax in New Zealand by 2018.
But the Government has not said how it will manage a transition in the future if companies don’t start paying more tax — if such a tax were to exist it could have devastating economic repercussions.
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It’s understood the Government will take an economic analysis of the current tax system into account as it makes its decision on whether to change the rules.
Corporate taxes are at record levels in New Zealand, and businesses and taxpayers alike feel the country’s tax system is not working.
Business groups say companies need to be more transparent and make more of a good faith effort to pay taxes and ensure tax avoidance goes away.
But some in the Industry expect the Government will make the best of a bad situation.
Business groups wan우리카지노t to see business tax rates in line with OECD economic standards but the Government has yet to comment on that.
«We don’t really know who the Government’s going to pick for the key part,» said the chairman of the New Zealand Chamber of Commerce, Steve Morrissey.
«As we speak their latest fiscal targets are still up for discussion but they’re the same as what they’ve announce바카라사이트d for the past 20 years.
«One of the areas of greatest concern to us is when that gap in the tax system will close because of corporate taxation, and particularly what that means for tax avoidance.
«They do recognise we need to pay a fair share, they do recognise that we need to put a stop to some of this dodgy behaviour, but we have yet to really get an official answer on that.
«We hope that, in the coming weeks and months, that will change.»
While the Government hasn’t done enough to reduce tax avoidance, it says corporate tax rates are among the major factors behind a large share of the economy growing in the last year, while the Government does have a range of tools to attract businesses to New Zealand to continue growing.