Following the 2017 General Election and change of government, the Labour-led coalition government established a Tax Working
Question:
Following the 2017 General Election and change of government, the Labour-led coalition government established a Tax Working Group (TWG) to consider the overall structure, balance and fairness of the tax system. In February 2019 the TWG issued its final report (in two volumes), aptly titled "Future of Tax: Final Report".
In the final report, the TWG states:
"Equity and fairness
16. A sense of fairness is central to maintaining public trust and confidence in the tax system. This is because a system that distributes the costs of taxation in a way that is perceived to be unfair will generate resentment and undermine social capital.
17. The inconsistent taxation of capital gains is unfair".
Required:
In the context of the New Zealand tax system, explain the concept of equity and fairness. Your answer should include examples of current inequities (unfairness) in the New Zealand tax system due to the lack of comprehensive capital gains tax.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr