New Zealand government abolishes two types of taxes on citizens
New Zealand government abolishes two types of taxes on citizens

Urgent .. Today, the New Zealand government removes two types of taxes, due to the conditions in the country during this period, to revive the economy in order to raise the standard of living of citizens.

Urgent The Government must cover the wages of workers' threatened with the loss of their livelihoods due to the coronavirus, furious MPs demanded today.

Treasury minister John Glen was blasted by both Labour and Tory backbenchers as he tried to explain help for those facing unemployment as the economy goes into meltdown in the face of the pandemic.

New Zealand removes two types of taxes due to the country's conditions

It came after Boris Johnson suggested last night that a 'universal basic income' - or UBI - is among the options on the table to avoid families being plunged into poverty and mass unrest as UK plc grinds to a halt.

France, Denmark, Sweden, Norway, Germany, Spain, Italy and New Zealand are among countries to make job protection a condition of financial lifelines for firms.

On the other hand .. New Zealand’s Inland Revenue Department (IRD) is proposing retrospective changes to New Zealand’s tax rules to simplify the taxation of cryptoassets and encourage the development of New Zealand’s cryptoasset sector. Simon Akozu and Zoe Barnes of MinterEllisonRuddWatts discuss the problems facing New Zealand’s cryptoasset sector under the current tax settings, and explain the solutions proposed in the IRD’s officials’ issues paper.

Urgent .. In this regard ، New Zealand’s tax rules have not kept pace with the fast moving cryptoasset sector. This has resulted in confusion over the taxation of cryptoassets, and over-taxation in certain cases.

Take GST (good and services tax—New Zealand’s value-added tax), for example. Under the current tax settings, it is arguable that cryptocurrencies do not fall within any relevant exemption from GST, even though currencies are generally exempt from GST.

Accordingly, it is arguable that a New Zealand seller of a bitcoin (for example) could be liable for GST on the sale of the bitcoin to a New Zealand buyer. This would be highly problematic, given the nature of cryptocurrencies and cryptocurrency exchanges as:

In this regard ، it may not be possible for the seller to verify whether the buyer of the bitcoin is a New Zealand resident or not (this is relevant to whether a GST rate of 0% can be applied to the sale).

even if it were possible for the seller to verify that the buyer is a New Zealand resident, given the nature of cryptocurrency exchanges it would be impractical (if not impossible) for the seller to try to charge the buyer a GST “gross up,” i.e. the seller would need to bear the full cost of GST.

In this regard ، worse still, we expect the seller would have difficulty claiming an input tax credit for the purchase of the bitcoin. This could mean the seller is exposed to GST at the rate of 15% on full proceeds from the sale of their bitcoin, with no offsetting input tax credit.