Capital Gains Tax? Keep related posts in this thread, please.

[Learning]

Anyone else hear Winnie Peters back pedaling on his anti CGT stance on Magic talk back this morning? Stating, on that topic, that he wouldn't be the only person to have said things in the past they might later regret and that he is only one voice in a democratic party.

[artemis]

Anyone else hear Winnie Peters back pedaling on his anti CGT stance on Magic talk back this morning? Stating, on that topic, that he wouldn't be the only person to have said things in the past they might later regret and that he is only one voice in a democratic party.

Did he mean NZ First is democratic? Yeah right.

[Perry]

There is nothing I can think of more slippery that Winston First.

What Learning has reported is really quite scary.

The only thing that Winston First can be relied upon for is (baubles and trinkets of power) Winston First.

[Perry]

Anyone with half a brain knew that the comic opera gummint of Taxcindarella and co appointed Comrade Commissar Cullen to head the tax working group to ensure that the socio-commie crowd got the outcome they wanted.

But given how punitive and Draconian the TWG report recommendations are, one has to wonder if Comrade Commissar Cullen is secretly in the pay of National, as well as collecting the not-insignificant stipend from chairing the TWG.

Unless Taxcindarella and co all along planned a ploy to 'water down' the TWG proposals in order to sucker their voting bloc, the proposals as they are will most likely lead Labour et al back to the Opposition benches in parliament. That 'watering down' may be what Comrade Robertson meant by the gummint taking "a measured approach in its response to the recommendations." Some details:

• Tax the capital gain on sale of land, shares, business assets, intangible assets such as intellectual property.
• Tax to be imposed when the asset is sold, and levied at the seller's marginal tax rate.
• The tax would not apply to the family home, and personal assets such as cars, paintings, jewellery, and household appliances.
• A holiday home would be taxed on sale.
• The capital gain on shares in companies would be taxed but in some circumstances capital losses would also be able to be offset against other income.
• The capital gain on the sale of a business would be taxed, including the goodwill.
• National would have the opportunity to repeal the legislation if it wins the election.

My understanding is that if the family home is on a farm, it will be subject to a CGT.

[north shore]

one of the comments on interest.co.nz said this Perry:

CGT tax will apply to any property above 4500m² - so screw the rural voters and lifestyle blockers eh? Never mind that their properties are worth way less than the untaxed urban family homes or waterfront apartments in Wellington and Auckland.
And no inflation indexing!!! Hold your asset through a period of high inflation or a few decades with no real growth and the government gets a huge cut - leaving you far behind where you were in real terms, and rewarding bad govt economic management with more tax.
"30. The excluded home should include the land under the house and the land around the house
up to the lesser of 4,500m2 or the amount required for the reasonable occupation and
enjoyment of the house. However, this land area allowance should be monitored and reduced
if necessary."

[Perry]

I've said it so many times: a CGT is a tax payable in today's dollars on the illusory and counterfeit dollars of inflation. (no real gain)

Further, a CGT then becomes an incentive for the gummint to foster inflation.

[Perry]

CGT tax will apply to any property above 4500m² - so screw the rural voters and lifestyle blockers eh?

Not Labour core constituency voters, so Taxcindarella et al don't care.

[Learning]

It's all "look at this big smoke over here, while I sneak this little fire in under here". They've published this 'doom and gloom, knee cap everyone and piss on their cornflakes' discussion paper for us all to get worried over. Give us all a year to panic, worry and prepare as best we can for the worst and then they'll announce their watered down version which will be slightly easier to swallow.

We're all thankful it wasn't as bad as it could of been and they'll have what they wanted the whole time.

[eri]

seymor of ACT

“The last thing New Zealand needs is a more progressive and more complicated tax system.

“According to Treasury, the top five per cent of adults already pay a third of all income tax, while the bottom 20 per cent pay nothing.

“This tax (is) about the politics of envy. The Government will soon realise that we can have an envy tax, or our country’s success can be the envy of the world, but we can’t have both.

“If the Government wants a more equal society, it should back those New Zealanders that struggle – for example by building the best education system in the world – rather than dragging down those who achieve and succeed.”

...

we've seen the botch they've made of kiwibuild through failing to think things through

how on earth do they expect us

to trust them

to write the country's biggest ever tax-grab

into a fair + workable law

within a year?

[Wayne]

It's all "look at this big smoke over here, while I sneak this little fire in under here". They've published this 'doom and gloom, knee cap everyone and piss on their cornflakes' discussion paper for us all to get worried over. Give us all a year to panic, worry and prepare as best we can for the worst and then they'll announce their watered down version which will be slightly easier to swallow.

We're all thankful it wasn't as bad as it could of been and they'll have what they wanted the whole time.

Pretty standard stuff then?

[Don't believe the Hype]

The simple solution is to pump as much money as you can into your home. Prime locations with higher end building will ensure your capital growth remains untaxed while driving up rents on the low end property ensuring your cash flow assets work harder.

A CGT means a clear delineation between growth assets (your home) and your flow assets. There will be lots of money in it for the those that can work out the best approach on this one is the first mover advantage will be great.

[Wayne]

The simple solution is to pump as much money as you can into your home. Prime locations with higher end building will ensure your capital growth remains untaxed while driving up rents on the low end property ensuring your cash flow assets work harder.

A CGT means a clear delineation between growth assets (your home) and your flow assets. There will be lots of money in it for the those that can work out the best approach on this one is the first mover advantage will be great.

Better to pump it into Art - isn't counted as assets for rest home aged care.
The home is counted.
Oh - and your car isn't counted either so a Maserati

[Don't believe the Hype]

Better to pump it into Art - isn't counted as assets for rest home aged care.
The home is counted.
Oh - and your car isn't counted either so a Maserati

a Maserati and a Picasso in my Cannons creek palace

[eri]

The Government's initial response to its own Tax Working Group's recommendations is extremely cautious,
but ministers say nothing is off the table.

so maybe the family home WILL be liable for CGT?

maybe they WILL bring back death-duties?

99.9% chance no

but you couldn't understand that from the conflicting mash that is being spluttered about right now

fairydust is missing in action

and winston continually contradicts himself

you think they will have a comprehensible + workable law in place before the october election?

yeah right!

it'll be more

"it's so hard, you've just got to trust us"

stop being so mean"

[Perry]

Ducking, Diving & Deception

Capital gains tax - what the TWG dissenters said
21 Feb 2019

Three members of the Tax Working Group have penned their own paper on why they think the rest of the working group have got it wrong on a capital gains tax. Three of the 11 members of the working group made it clear they did not agree, arguing the extra hassle wasn't worth it for the "relatively low" amount of extra revenue the tax would raise. "New Zealand's current tax system is relatively simple and efficient", they said.

It said that the compliance and administrative costs of a capital gains tax (CGT) and its impact on "efficiency" would outweigh any gains in terms of increased tax, "fairness perceptions and possible integrity benefits". "Business must take risks and be encouraged to experiment with new ideas and methods. Entrepreneurship and experimentation should be encouraged and not penalised. "New Zealand's tax system should not impede this," they said. The comprehensive CGT the working group was proposing would harm innovation and be likely to "distort investment decisions", they said.

I wonder if the TWG Glossary had a definition of 'fair?'