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Sandy Lau: PWC tax partner on ANZ's Chief Executive voicing support for a Capital Gains Tax · The SME Stream

• 0:00
  Speaker 1: Capital gains tax is back in the news. A and
• 0:02
  Speaker 1: Z CEO Antonia Watson says that she supports one. If
• 0:06
  Speaker 1: someone had the courage to do it, I wouldn't be
• 0:07
  Speaker 1: jumping out of bed with joy, But in terms of
• 0:09
  Speaker 1: the overall fairness, it's probably a fair way to tax
• 0:13
  Speaker 1: another part of income in this economy. Antonia was not
• 0:16
  Speaker 1: available to speak with us about it. Am Z told
• 0:18
  Speaker 1: us this is her personal opinion, not the bank's opinion.
• 0:21
  Speaker 1: PwC tax partner Sandy Loo joins us now on this,
• 0:23
  Speaker 1: say Sandy, good afternoon. Why would a bank CEO endorse
• 0:28
  Speaker 1: the CGT.
• 0:29
  Speaker 2: Look. I think around Cavil gaines tax has been around
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  Speaker 2: for quite a while, and over the last few years,
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  Speaker 2: in particular the last couple of elections, there's been a
• 0:40
  Speaker 2: much more discussion around it, and I guess if we
• 0:44
  Speaker 2: look ahead at New Zealand in general, including some of
• 0:48
  Speaker 2: the key factors like our changing demographics, and thinking about
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  Speaker 2: the level of tax that were collecting, it's one of
• 0:56
  Speaker 2: the topics more more because as the country needs to
• 1:01
  Speaker 2: grapple worth making sure we are connect collecting enough tax
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  Speaker 2: to meet the expended our expenditure needs in the most
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  Speaker 2: efficient manners. That's why lots more people are thinking and
• 1:15
  Speaker 2: talking about it. Is it?
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  Speaker 1: I mean, look, the thing is sandy. In terms of
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  Speaker 1: our actual tax revenue, right, it's not going to bring
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  Speaker 1: that much. Is less than what like, it's less than
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  Speaker 1: half of one percent. It's really hard to comply with,
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  Speaker 1: It's really hard to collect. Is this just a case
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  Speaker 1: of people wanting to get on the right side of
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  Speaker 1: history on this one?
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  Speaker 2: I think in terms of thinking about the overall tax system,
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  Speaker 2: and I think it's actually one of the questions that
• 1:41
  Speaker 2: in a revenue is going to be thinking about as
• 1:43
  Speaker 2: part of their long term insights. Brief thing which is
• 1:47
  Speaker 2: actually is thinking about this. Does New Zealand's tax system
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  Speaker 2: from a structural perspective? Is it going to meet this
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  Speaker 2: future needs? And I think that's the piece around it.
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  Speaker 2: And I don't think having a capital gains tax that's
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  Speaker 2: going to be the Silla bullets are to stake and
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  Speaker 2: it will fix all the problems, but it may be
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  Speaker 2: one of the few things that needs to be done
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  Speaker 2: to make sure that our tax system continues to be
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  Speaker 2: fit for the future as we go ahead, to go
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  Speaker 2: along for a.
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  Speaker 1: Long time, let's say Sandy for the purposes of this exercise.
• 2:19
  Speaker 1: You are the finance minister and you're so popular that
• 2:21
  Speaker 1: you do anything you want. Would you introduce the CGT.
• 2:25
  Speaker 2: Look, I think there's a bunch of different options that
• 2:28
  Speaker 2: are put on the that could be put on the table,
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  Speaker 2: and I think it's ultimately always going to be a
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  Speaker 2: balancing act, right And I think one of the things
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  Speaker 2: that we have seen in particular in the last government
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  Speaker 2: was around that discussion of something alternative to a capital
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  Speaker 2: gains tax, which was discussion around the wild taxes. So
• 2:45
  Speaker 2: I guess the key thing is looking at it, and
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  Speaker 2: ultimately we have taxes is to make sure that we
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  Speaker 2: generate enough the government can can link enough revenue in
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  Speaker 2: the most efficient manner. So it's thinking about is this
• 3:01
  Speaker 2: the best way to collect the amount of cash that
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  Speaker 2: the government needs, and if capital gains tax might be
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  Speaker 2: one of the ones that's in the mixt I think
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  Speaker 2: about
• 3:11
  Speaker 1: Okay, Sandy, thank you very much, Sandy Loo, PwC Tax Partner,