Latest / Best of Business / Robin Oliver: OliverShaw Tax Partner on the Government hinting towards changes to corporate tax settings

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Robin Oliver: OliverShaw Tax Partner on the Government hinting towards changes to corporate tax settings · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk SEDB. Follow
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  Speaker 2: On the show yesterday that yesterday this is going for
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  Speaker 2: growth theme, I asked Nicola Willis, the Finance Minister, if
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  Speaker 2: she would cut the corporate tax rate.
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  Speaker 3: We're not as competitive as we used to be. We
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  Speaker 3: can't take tax off the table because it could make
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  Speaker 3: a difference to our competitiveness. We always have to balance
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  Speaker 3: that against our other pressing needs.
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  Speaker 2: She has said she is actively looking at the corporate
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  Speaker 2: tax rate. Currently it sits at twenty eight percent. The
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  Speaker 2: OECD average is twenty four percent. We've been at twenty
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  Speaker 2: eight since twenty eleven. Singapore's corporate rate is seventeen. Ireland's
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  Speaker 2: is twelve and a half. Remember Ireland, we all want
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  Speaker 2: to be like Irand to discuss tax advisory expert Robin
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  Speaker 2: Oliver from Oliver Shaw is with me, Good evening evening.
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  Speaker 2: How do we rank.
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  Speaker 4: Really lobally? As a bit of said, we're not competitive
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  Speaker 4: international and particularly for a small country. We're more like
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  Speaker 4: Ireland and Singapore, as you say, seventeen twelve point five,
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  Speaker 4: not like the UK and Europe twenty five, US twenty one.
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  Speaker 4: We are twenty eight. We stand out uncompetitive and I
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  Speaker 4: think the government's right to say we want to be Ireland,
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  Speaker 4: we want to be Singapore, a successful small open economy.
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  Speaker 2: How low can we go?
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  Speaker 4: Well, the governments that a bide, it's made for small
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  Speaker 4: commitments to balance the books and what have. You got
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  Speaker 4: to be very hard to do that if you're going
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  Speaker 4: to cut taxes, because you have to have more expenditure
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  Speaker 4: reductions and so forth. So the government's going to sit
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  Speaker 4: back and really strategically think of how we put tax
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  Speaker 4: in the Mexican it's no point in us in a
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  Speaker 4: marketing campaign to be Singapore where we don't have the
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  Speaker 4: product yourself, which is where we are. And so we've
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  Speaker 4: got twenty eight percent, Well we went down to twenty five.
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  Speaker 4: That will cost us about a billion dollars paradum and tax,
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  Speaker 4: and that still wouldn't be much competitive compared to these
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  Speaker 4: small open economies. So we really have to be bowl
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  Speaker 4: but targeted.
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  Speaker 2: What do you mean targeted?
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  Speaker 4: Who do we target?
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  Speaker 2: How do we target them?
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  Speaker 4: Targeted to where the tax cost is really affecting our
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  Speaker 4: productivity and economic growth of BASTE, not across the across
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  Speaker 4: the board. And be lovely, but where it's affecting it
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  Speaker 4: the most, and that tends to be fine investment and
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  Speaker 4: globally mobile talent. And there are many options here, you know.
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  Speaker 4: One is to allow expensing the deduction for the fore
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  Speaker 4: cost of investment assets card to be seeding, and you
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  Speaker 4: can do things like say, and it's really expensive to do,
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  Speaker 4: but you can say, well, we'll allow you to deduct
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  Speaker 4: the forecast of new card and machinery over five years the.
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  Speaker 2: Fastest, the fastest appreciation. Robin. We did discuss that with
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  Speaker 2: Nikola Willis as well and she said that is absolutely
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  Speaker 2: on her radar as well. So there are a couple
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  Speaker 2: of options I guess under the umbrella of text that
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  Speaker 2: they could look at. Robin, thank you very much for
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  Speaker 2: your time. Would you have to leave it there? Robin
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  Speaker 2: Oliver Tax Advisor with Oliver Shore.
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