Forum Archive Index - February 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi hugh,


>
>
>Actually I very well recall the then National Govt via IRD 
>introducing such a tax at the very worst time just after 1987 when I 
>was a shareholder in IEP, Ron Brierley's overseas company which was 
>a partial subsidiary of BIL. It was madness as pointed out in other
>posts in terms of taxing non existent wealth as if there was a cash
>flow when there wasn't. After protestations from 
>shareholders/National Party members the Govt overruled the 
>rottweilers in IRD and it sank.
>
>
>


What amazes me was that all the talk in the media at the time was on 
the 'tax on houses', which even the final report says was never going 
to be a goer.

Yet the wealth tax on shares was hardly mentioned in the mainstream 
media.   The idea is to introduce it on overseas shares first this 
year, then use the same system to tax New Zealand shares in 
subsequent years.


>
>
>Will Cullen have equal common sense in the end....
>
>



Nope.  In the modern tradition, the trickle of pre-budget 
announcements have started.  Cullen's speech today wasn't flying a 
kite.  It was a prebudget announcement so that there will be no 
surprises for us on budget night.  Believe me this threat is real, 
and probably the biggest business news story for fifteen years.   
Yet it has received so little coverage in the media it's laughable. 

SNOOPY






 
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