Latest / Best of Business / Sandy Lau: PWC tax partner on ANZ's Chief Executive voicing support for a Capital Gains Tax

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Sandy Lau: PWC tax partner on ANZ's Chief Executive voicing support for a Capital Gains Tax · Best of Business

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  Speaker 1: You're listening to a podcast from Newstalk Z'B. Follow this
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• 0:16
  Speaker 2: Capital Gains Tax is back in the news. A and
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  Speaker 2: Z CEO Antonia Watson says that she supports one. If
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  Speaker 2: someone had the courage to do it, I wouldn't be
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  Speaker 2: jumping out of bed with joy. But in terms of
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  Speaker 2: the overall fairness, it's probably a fair way to tax
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  Speaker 2: another part of income in this economy. And Johnia was
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  Speaker 2: not available to speak with us about it. Am Z
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  Speaker 2: told us this is her personal opinion, not the bank's opinion.
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  Speaker 2: PwC tax partner Sandy Loo joins us now on this say.
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  Speaker 3: Sandy, good afternoon.
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  Speaker 2: Why would a bank CEO endorse the CGT.
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  Speaker 3: Look. I think around Cavil Gaines tax has been around
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  Speaker 3: for quite a while, and over the last few years,
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  Speaker 3: in particular the last couple of elections, there's been a
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  Speaker 3: much more discussion around it, and I guess if we
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  Speaker 3: look ahead at New Zealand in general, including some of
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  Speaker 3: the key factors like our changing demographic and thinking about
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  Speaker 3: the level of tax network collecting, it's one of the
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  Speaker 3: tops them more and more because as the country needs
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  Speaker 3: to grapple worth making sure we are connect collecting enough
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  Speaker 3: tax to meet the expended our expenditure needs in the
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  Speaker 3: most efficient manners. If that's why lots more people are
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  Speaker 3: thinking and talking about it, is it?
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  Speaker 2: I mean, look, the thing is sandy in terms of
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  Speaker 2: our actual tax revenue, right, it's not going to bring
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  Speaker 2: that much. Is less than what like, it's less than
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  Speaker 2: half of one percent. It's really hard to comply with,
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  Speaker 2: it's really hard to collect it. Is this just a
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  Speaker 2: case of people wanting to get on the right side
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  Speaker 2: of history on this one?
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  Speaker 3: I think in terms of thinking about the overall tax system,
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  Speaker 3: and I think it's actually one of the questions that
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  Speaker 3: in a revenue is going to be thinking about as
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  Speaker 3: part of their long term insights. Brief thing which is
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  Speaker 3: actually is thinking about this. Does New Zealand's tax system
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  Speaker 3: from a structural perspective? Is that going to meet this
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  Speaker 3: future needs? And I think that's the piece around it.
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  Speaker 3: And I don't think having a capital gains tax that's
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  Speaker 3: going to be the sillabuleets for the sick and it
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  Speaker 3: will fix all the problems, but it may be one
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  Speaker 3: of the few things that needs to be done to
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  Speaker 3: make sure that our tech system continues to be fit
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  Speaker 3: for the future as we go a head to go
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  Speaker 3: along for a long time.
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  Speaker 2: Let's say, Sandy, for the purposes of this exercise, you
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  Speaker 2: are the Finance minister, and you're so popular that you
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  Speaker 2: do anything you want. Would you introduce the CGT.
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  Speaker 3: Look, I think there's a bunch of different options that
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  Speaker 3: are put on the tip, that could be put on
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  Speaker 3: the table, and I think it's ultimately always going to
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  Speaker 3: be a balancing act, right And I think one of
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  Speaker 3: the things that we have seen is in particular in
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  Speaker 3: the last government, was around that discussion of something alternative
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  Speaker 3: to a capital gains tax, which was discussion around the
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  Speaker 3: weld taxes. So I guess the key thing is looking
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  Speaker 3: at it and ultimately that we we have taxes is
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  Speaker 3: to make sure that we generate enough the government can
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  Speaker 3: collect enough revenue in the most efficient manner. So it's
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  Speaker 3: thinking about is this the best way to collect the
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  Speaker 3: amount of cash that the government needs, and if capital's
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  Speaker 3: gains tax might be one of the ones that's in
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  Speaker 3: the mixt I think about.
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  Speaker 2: Okay, Sandy, Thank you very much, Sandy Loo PwC Tax partner.
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