The latest proposals from Inland Revenue go a long way to assuaging concerns about planned tax reform legislation.
Venture capitalist Jenny Morel says that the changes to the tax regime as originally proposed would have been â€śa complete disasterâ€?.
Software developer John Blackham told Computerworld (May 15) that the initial proposal to introduce a capital gains tax on investment in companies based in New Zealand but which have an overseasâ€™ investment base, typical of many IT startups, would be a â€śdeath sentenceâ€? for innovation in this country.
He and fellow entrepreneurs made proposals to ministers for ways of alleviating the burden last month, and the government announced a partial back-down as part of its budget round, saying it would give certain investors in these companies a five-year â€śholidayâ€? from the new tax.