Capital Gains Tax finally on a major party's agenda

[short-circuit]

they'd rather sell everything first.

Which has got fuck all to do with fiscal prudence (because as we all know from experience it's actually an extremely expensive exercise that bleeds money in the long term) and everything to do with looking after their mates - the large corporates.

One day they will get over their furvent frothing-at-the-mouth hate of the "rich pricks" and may see what a bunch of criminal arseholes they are.

with this in mind, who are the real criminals?

[Spearfish]

Whats the compliance cost going to be for the GOVT and the public with Labours new Tax packages?

The no GST on fresh fruit and is going to be as complicated as CGT

For instance
a watermelon will be free of GST
If a shop cuts it in half and wraps it, its processed so isn't free of GST?
What about a tin of fruit or frozen veges?
A steak at a restaurant is + GST a fruit salad is - GST
but a fruit salad with ice cream is +GST?

A family member dies and leaves an inheritance, some in cash a bike or two and a house and its chattels, what is taxed with CGT, its all a gain isn't it?

A tradesman or small business is working from home and using the garage claiming expenses at a percentage for the garage used, eg rates, insurance, even some of the interest component of a mortgage as a cost for running that business, does that mean the whole house gets valued for CGT and the percentage used for tax claims becomes payable under CGT?

So the new labels on items could be a combination of
+ GST
including GST
+ GST if any

new ones
+ CGT
including CGT
+ CGT if any

ODD ones
+gst including CGT
gst included + CGT
GST if any+ CGT if any

How much to to fly to oz?

[mashman]

Which has got fuck all to do with fiscal prudence (because as we all know from experience it's actually an extremely expensive exercise that bleeds money in the long term) and everything to do with looking after their mates - the large corporates.

Surely not . T'was Cunliffe on the telly the other morning explaining that very point of view, as well as the Nats telling them to fuck off. It takes a looooong time to organise these asset sales... no doubt they've already wasted several 10's of millions seeking advice in regards to the asset sales... can't even make their own minds up so they leave it to the lawyers, accountants and corporations to decide what's best for the "common man". Someone somewhere is laughing hard whilst selling out the people of NZ... I just wish it was me

[mashman]

Whats the compliance cost going to be for the GOVT and the public with Labours new Tax packages?

The no GST on fresh fruit and is going to be as complicated as CGT

Probably less than compliance costs for selling assets?

If you don't put GST on fruit and veges at the initial point of sale, i.e. the "garden", then is there need for anyone else to add GST on to the price of the item? Granted that seems a little simplistic, and as you mention there is effort getting from "garden" to store that will incur GST. But, if the point of origin, producer, isn't charging or being charged GST of fruit and veges, then would that not mean that fruit and veg becomes 15% cheaper at the checkout?

[Oscar]

The no GST on fresh fruit and is going to be as complicated as CGT

Good points.
However the no GST on fresh fruit and Vege makes me laugh.
There's a Tui Ad in it somewhere:

No GST on Friut and Vege? - Let's not go to KFC tonight, we'll buy an apple instead...

[Oscar]

Probably less than compliance costs for selling assets?

If you don't put GST on fruit and veges at the initial point of sale, i.e. the "garden", then is there need for anyone else to add GST on to the price of the item? Granted that seems a little simplistic, and as you mention there is effort getting from "garden" to store that will incur GST. But, if the point of origin, producer, isn't charging or being charged GST of fruit and veges, then would that not mean that fruit and veg becomes 15% cheaper at the checkout?

What if the potatoes go from the garden to the McDonalds chip factory?

[Spearfish]

Probably less than compliance costs for selling assets?

If you don't put GST on fruit and veges at the initial point of sale, i.e. the "garden", then is there need for anyone else to add GST on to the price of the item? Granted that seems a little simplistic, and as you mention there is effort getting from "garden" to store that will incur GST. But, if the point of origin, producer, isn't charging or being charged GST of fruit and veges, then would that not mean that fruit and veg becomes 15% cheaper at the checkout?

But if anyone who passes that product through them is earning over 60k then they have to pay gst.
The gardener grows it and sells their crop for 40k over the season, don't have to be GST registered BUT becomes the consumer of gst so any price they set essentially includes their costs (including the gst they have paid like you and me) with, hopefully a profit added.
So at this point some GST has been paid.
The company who they sold it to buys from all the growers in the area and is has to be GST registered so they ADD gst to the cost because they cant it pass through them plus it gets tricky if some of its sales are exempt and others aren't depending on who they sell it to so that adds a cost of compliance they will pass on.
They sell and distribute the produce to the local shops and processing companies. The shop pays the GST inclusive price the distributor has asked and added their margin.
Consumer goes into the shop buys a bag full of fruit and doesn't notice a scrap of difference and, if its anything like my house, the bloody stuff rots in the fruit bowl anyway.

[mashman]

What if the potatoes go from the garden to the McDonalds chip factory?

But if anyone who passes that product through them is earning over 60k then they have to pay gst.
The gardener grows it and sells their crop for 40k over the season, don't have to be GST registered BUT becomes the consumer of gst so any price they set essentially includes their costs (including the gst they have paid like you and me) with, hopefully a profit added.
So at this point some GST has been paid.
The company who they sold it to buys from all the growers in the area and is has to be GST registered so they ADD gst to the cost because they cant it pass through them plus it gets tricky if some of its sales are exempt and others aren't depending on who they sell it to so that adds a cost of compliance they will pass on.
They sell and distribute the produce to the local shops and processing companies. The shop pays the GST inclusive price the distributor has asked and added their margin.
Consumer goes into the shop buys a bag full of fruit and doesn't notice a scrap of difference and, if its anything like my house, the bloody stuff rots in the fruit bowl anyway.

If Maccas get to buy potatoes without GST on them, then that should (yeah yeah) make the end product cheaper? Irrespective of the GST that will be charged after that in the course of normal business? Especially when buying in bulk?

[Oscar]

If Maccas get to buy potatoes without GST on them, then that should (yeah yeah) make the end product cheaper? Irrespective of the GST that will be charged after that in the course of normal business? Especially when buying in bulk?

1. The proposal is that fresh fruit and veges have no GST.
2. Maths isn't your strong point is it?

[Ocean1]

genuinely interested to know where these figures come from - could either of you post references, please?

"the burden on high income earners is even higher once those on Working for Families, New Zealand Superannuation and other benefits are included. Under that scenario, the top 10 per cent of taxpayers shoulder 76 per cent of the tax burden."

http://www.stuff.co.nz/national/poli...-to-Government

[mashman]

1. The proposal is that fresh fruit and veges have no GST.
2. Maths isn't your strong point is it?

1. aha, your point?
2. fruit and veges won't be cheaper from the supplier?

[BoristheBiter]

1. aha, your point?
2. fruit and veges won't be cheaper from the supplier?

No, because you get the GST back if on selling.

[Oscar]

1. aha, your point?
2. fruit and veges won't be cheaper from the supplier?

The only person that actually pays the GST is the end user.

[NighthawkNZ:Me]

Now its a 4 bed with en-suite, internal double garage, designer kitchen and only purchased if it meets with the approval of their "friends" on twitter.

Fuck I wish...

[oneofsix]

The only person that actually pays the GST is the end user.

True but everyone else pretends they pay and then need to include mark up to cover administrating it.
Back the Mashman's point, when Macas buy the spuds they are fresh therefore Macas wont have to pay the suppliers pretend GST and should be able to pass on the 'savings'.
Contra; I can't remember Macas putting the price up to include GST in the first place. With 'raising costs' and other excuses I wont be expecting to see many price reductions outside the green grocers.