Post by Kiwi Frontline on Jun 26, 2016 8:23:04 GMT 12
Sunday Star Times 26/6/16
FAIR TAXATION
In 1776, the Scottish philosopher and economist Adam Smith argued for equity and fairness in tax.
Yet today in New Zealand we allow charities to undertake commercial trading activities that are unrelated to their charitable purposes while paying not one cent of income tax on their profits ("Prized tax exemption denied to 500 groups", News, June 19).
For its 2015 year New Zealand's largest iwi, Ngai Tahu, reported non-taxable income of $139 million from its many commercial activities which, if taxed at the company rate of 28 per cent, would have contributed $39m to the Government's coffers.
Our tax policy in this regard is failing but no Government has yet had the courage to tackle this issue.
DR MICHAEL GOUSMETT,
University of Canterbury
FAIR TAXATION
In 1776, the Scottish philosopher and economist Adam Smith argued for equity and fairness in tax.
Yet today in New Zealand we allow charities to undertake commercial trading activities that are unrelated to their charitable purposes while paying not one cent of income tax on their profits ("Prized tax exemption denied to 500 groups", News, June 19).
For its 2015 year New Zealand's largest iwi, Ngai Tahu, reported non-taxable income of $139 million from its many commercial activities which, if taxed at the company rate of 28 per cent, would have contributed $39m to the Government's coffers.
Our tax policy in this regard is failing but no Government has yet had the courage to tackle this issue.
DR MICHAEL GOUSMETT,
University of Canterbury