John Key has become impaient with the red tape required to setup NZ as a financial services hub.
Prime Minister John Key has slammed bureaucratic pin-pricking over the proposed New Zealand financial services hub as “absolute rubbish” and stepped in to put the project on the fast-track.
Economic Development Minister Gerry Brownlee has been ordered to produce an urgent paper covering a zero tax rating for the relevant foreign funds which Key wants incorporated in the November taxation bill and passed by April 1 next year.
Then in the Heralds editorial we find this commentary:
Just about every business could justify tax-free status on the basis of the jobs it creates. If administrative services to foreign funds has a case for tax exemption we are all ears.
Funds should locate their back office functions here for the reasons Mr Brownlee suggests: transparent, stable and neutral law, consistent regulation and taxation, a talent pool, time-zone advantages.
The Herald raises a good point here, what is the basis on which these funds will be given “zero rating”? That they create jobs?
On a similar topic I was reading the list of companies who received Government support towards their R and D costs:
I think what’s important here is that these are all great ideas in principal, but exactly how many jobs are being created by giving away these R and D grants? How many jobs will be created by setting NZ up as a tax haven? There needs to be more transparency around how these decisions are arrived at and what the alternatives are.