MEDIA RELEASE

NZ First Tax Policy Breaches the China FTA Winston Peters Signed

20 JULY 2014
FOR IMMEDIATE RELEASE

Reacting to New Zealand First leader Winston Peters’ policy announcement to introduce a capital gains tax on foreign owned homes and assets, Jordan Williams, Executive Director of the Taxpayers’ Union says:

“Mr Peters needs to refresh himself on the free trade agreement signed with China while he was Minister of Foreign Affairs."

The China FTA requires Chinese and New Zealand investors to be treated equally, including for disposal of assets.

"Mr Peters is either forgetful or intends on tearing up the agreement and jeopardising the $20 billion in annual trade we now enjoy with China."

“New Zealand needs a low rate, low complexity tax system to attract wealth, investment and jobs. Introducing tax rules based on nationality moves us in the direction ofVenezuela, when we should be chasing Switzerland."

ENDS

NOTES:

Free Trade Agreement Between The Government of New Zealand And The Government of the People’s Republic of China

Article 138 National Treatment

Each Party shall accord to investments and activities associated with such investments, with respect to management, conduct, operation, maintenance, use, enjoyment or disposal, by the investors of the other Party treatment no less favourable than that accorded, in like circumstances, to the investments and associated activities by its own investors.
(Full text available here)

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