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Top KPMG Partner thinks corporate tax rate too high

Brahma Sharma the Partner in Charge of tax at KPMG has said:

Braham Sharma, senior tax partner at KPMG, said the New Zealand business tax rate was now well above the average 29.99 per cent across the Asia-Pacific region and the 30 per cent rate in Australia.

Companies looking to invest in other countries looked first at headline corporate tax rates and then to investment and tax incentives, such as tax holidays and accelerated depreciation provisions, he said.

Generally, New Zealand did not offer incentives and its tax rate was relatively high, which put it behind other countries looking to invest here, he said.

This comes after KPMG’s recently release global tax survey.

What I find interesting about this story is that KPMG has of late been seeking more publicity. Murray Sarelius published an article in the NZ Herald last week on the how the new tax rules will affect international expatriates. KPMG seem to shy away from publicity and it is usually PWC’s tax partner John Shewan who is quoted. It will be interesting to see if the trend continues, or if theses were two one off events.

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This entry was posted on Thursday, April 13th, 2006 at 9:49 am and is filed under Income Tax, Tax Policy, Tax compliance industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Top KPMG Partner thinks corporate tax rate too high”

  1. Dennis Howlett Says:
    April 17th, 2006 at 5:04 pm

    If you were KPMG and had been slapped with a $456 million fine for selling illegal tax schemes yet still managed to publish global profits of $15+ million, you’d keep quiet, wouldn’t you?

  2. Richard Murphy Says:
    April 30th, 2006 at 9:08 am

    KPMG’s survey is based on dubious methodology.

    First of all it takes headline rates and does not take the tax base into account.

    Second in tax havens it often says the local domestic resident rate is the tax rate, which is well known to be wrong.

    Thirdly, the trend data is not weighted by GDP. The result is it massively overstates the fall in tax rates.

    It should be seen for what it is – spin for those who want the tax rates on capital cut.

    For more data see “Mind the Tax Gap” published January this year. http://www.taxjustice.net/cms/upload/pdf/Mind_the_Tax_Gap_-_final_-_15_Jan_2006.pdf -

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