Things I don’t like about NZ tax system

01. NZ is one of the countries which has higher tax rate for both companies and individual. Compare to the other countries with he same economy NZ has higher rate rates for both individuals and companies

02. NZ is one of the countries which has higher penalties failure to comply with voluntary disclosure. Even though NZ tax system promotes voluntary disclosure, it is also impose heavy penalties on those who fails to voluntary comply with their tax obligations

03. NZ tax system needs advance knowledge to understand it. The tax returns for certain entities needs to be certified by the Chartered Accountants.

04. The tax legislation changes very often and need up to date knowledge. The legislation in relation to the tax administration changes very often. Therefore it may be difficult to every one to cope with the changes.

05. Personal tax system in NZ is based on marginal income threshold. These thresholds are too low compare to other countries

06. Should charge higher tax for rich people and vice versa. NZ tax system should target more on rich people than average and low income tax payers.

07. Double tax agreement is not fair for the businesses which import or export from the countries which have not included in the scheeme