Scholarship

Trusted taxpayer regime just the beginning

Trusted taxpayer regime just the beginning 2315 1545 Lloyd

Winning this year’s Tax Policy Scholarship Competition has given Spark’s Nigel Jemson huge encouragement to keep sharing his tax reform ideas.

Jemson will receive $10,000 after wowing a heavyweight judging panel while presenting his trusted taxpayer regime idea at Wellington’s Victoria University.

The winning entry

Under his proposal, businesses would receive a 10 percent discounted tax rate if they opt to regularly report financial information to IRD.

Taxpayers part of the trusted taxpayer regime for three years or more will also have their annual tax return requirement removed.

A small business would be eligible for the scheme if they are using the accounting income method to pay provisions tax and operating a “predominantly cash-free” business.

Jemson was thankful for the opportunity to enter the Tax Policy Scholarship Competition.

“It’s great that young professionals get the chance to bring some new ideas to the table and get feedback on them,” he says.

“Winning the competition has given me huge encouragement to continue contributing my ideas in the tax policy sphere.”

Minister of Revenue Stuart Nash and 2019 Tax Policy Scholarship Winner Nigel Jemson

The other proposals

Jemson’s idea was among four proposals the judging panel listened to during the Tax Policy Scholarship Competition final.

Deloitte’s John Lohrentz was runner up, taking away $4000, while Shay Webster (also Deloitte) and Michael Hansby (PwC) each pocketed $1000.

Lohrentz supported a progressive tax on biogenic methane emissions in the agriculture sector.

Revenue from the tax would go back into agricultural. That would be in the form of:

  • A fund to grant money to those changing land use, planting trees, retraining or implementing more efficient practices and technology.
  • An R&D tax credit exclusively for climate change-orientated R&D in the agriculture sector.

Not only that, but he also promotes a 40 percent R&D tax credit. This would be for taxpayers undertaking a core R&D activity that fosters ‘natural capital’ in New Zealand’s agriculture sector.

Webster favoured using tax to create a broad, universal welfare system to tackle inequality, reduce the cost of welfare and stimulate the economy.

He proposes doing this by implementing a negative income tax combined with a flat rate of 33 percent for individuals.

Under this, those earning less than $31,500 will receive a tax credit or a weekly or fortnightly cash payment from the Government.

Hansby recommended giving regional councils the power to impose tax on extracted freshwater to moderate consumption.

Additionally, they would retain 50 percent of the revenue the tax generates as part of this proposal.

While each council will be able to determine the tax rate, he suggested a base tax rate of two cents per thousand litres.

Jemson and Lohrentz will now present their proposals at Young IFA.

The thoughts of the judges

Overall, competition judge Robin Oliver says the finalists’ proposals reflect the changing nature of tax policy and how it interreacts with social concerns such as the environment, welfare reform and how to better manage taxpayer behaviour.

“Tax used to be much more about black letter tax law – the rules about measuring income and expenditure.

“The role of tax in building a sustainable and working society is being increasingly recognised, as is evident from this year’s [finalists].”

The former deputy commissioner of IRD was joined on the judging panel by Tax Policy Charitable Trust chair John Shewan, former Reserve Bank of New Zealand governor Alan Bollard, tax barrister David McLay, former Bell Gully tax partner Joanne Hodge and former IRD deputy commissioner Robin Oliver.

Tax Policy Scholarship Competition background

Every two years the Tax Policy Charitable Trust invites tax professionals under the age of 35 with an interest in tax policy to make a submission that outlines a significant form to the tax system.

Those in the private and public sectors and academia working (or eligible to work) in New Zealand are eligible to enter.

Matt Woolley, who was co-winner of the 2017 competition with Talia Smart, says it provided him with the opportunity to advocate for tax law reform in an area of interest and present to members of the Tax Working Group and government officials.

Caleb McConnell was the winner of the first Tax Policy Scholarship Competition in 2015.

About the Tax Policy Charitable Trust

Tax Management NZ founder Ian Kuperus is responsible for creating the Tax Policy Charitable Trust.

His aim is to support the continuation of leading tax policy research and thinking and inspire future tax policy leaders.

In addition to the Tax Policy Scholarship Competition, the trust also sponsors the visit of a leading tax expert to New Zealand.

This is to ensure New Zealand benefits from the best tax thinking from overseas.

 

Matt Woolley and Talia Smart named joint winners of tax comp.

Matt Woolley and Talia Smart named joint winners of tax comp. 510 307 Lee Stace

Treasury’s Matt Woolley and Talia Smart from Inland Revenue (IRD) are the co-winners of tax policy competition run by the Tax Policy Scholarship Charitable Trust (TPSCT).

The pair impressed the heavyweight judging panel while presenting their respective proposals at Wellington’s Victoria University, receiving $7000 each for their efforts.

Woolley discussed a fully integrated tax system that attributes all company income to shareholders. Under that approach, businesses would pay tax on behalf of shareholders based on their marginal rates.

Smart’s proposal looked at removing the business income exemption for charities.

The other finalists were Chris Park (KPMG) and Nicholas Coyle (IRD).

Park’s proposal revisited the idea of a land tax, while Coyle’s presentation reconsidered the claw back of interest deductions. Both received $1000.

Presentations were judged by a panel comprising TPSCT chair and former PwC chair John Shewan, ex-Bell Gully tax partner Joanne Hodge, former IRD deputy commissioner Robin Oliver, Victoria University Business School dean Bob Buckle and ex-secretary of Treasury John Whitehead.

Competition background

Tax professionals under the age of 35 were invited by the TPSCT to submit proposals that outlined a significant reform of the tax system. Twenty-five entries were received.

The TPSCT was established in 2012 by Tax Management NZ and its founder Ian Kuperus to inspire the next generation of leaders in New Zealand tax policy and administration.

Minister of Revenue announces tax policy competition finalists

Minister of Revenue announces tax policy competition finalists 510 300 Taxpolicy

Minister of Revenue Judith Collins was on hand to announce the finalists for this year’s Tax Policy Competition.

They are Talia Smart and Nicholas Coyle (both from Inland Revenue), Treasury’s Matt Woolley, and PwC’s Chris Park.

The finalists for the competition, which has been organised by the Tax Policy Scholarship Charitable Trust (TPSCT), were announced during a live stream of events simultaneously held in Wellington and Auckland.

Smart’s proposal looked at removing the business income exemption for charities, while Coyle’s reconsidered the claw back of interest deductions. Woolley discussed full corporate-personal tax integration and Park revisited the idea of a land tax.

As well as Minister Collins, other notable attendees were Inland Revenue Commissioner Naomi Ferguson and TPSCT Chair and former PwC Chair John Shewan, who delivered the opening address.

The finalists will present their full proposals in front of a heavyweight panel of judges during the awards dinner in Wellington on 17 October.

Joining Shewan on the panel are ex-Bell Gully Tax Partner Joanne Hodge, former IRD Deputy Commissioner Robin Oliver, Victoria University Business School Dean Bob Buckle and ex-Secretary of Treasury John Whitehead.

The winner will receive $10,000, the runner-up $4000 and the other finalists $1000 each.

Late last year, the TPSCT invited tax professionals under the age of 35 working in the public and private sector or academia to submit progressive and innovative reform ideas for the New Zealand tax system.

Given 2017 is an election year, proposals had to outline a significant reform of the New Zealand tax system in terms of its bases, method of collection, interface with taxpayers, legal framework or structural amendment.

Twenty-five applications were received by the judges.

The TPSCT was established in 2012 by Tax Management NZ and its Founder Director Ian Kuperus. Its aim is to inspire the next generation of leaders in New Zealand tax policy and administration.

Young tax guns to talk alternatives to CGT, GST on imports

Young tax guns to talk alternatives to CGT, GST on imports 453 300 Taxpolicy

Taxation of houses under a capital gains tax (CGT) and GST on imports are among the ideas four young tax professionals will showcase to respected tax leaders in Wellington in October.

Auckland trio Jeremy Beckham, Matthew Griffin and Peter North along with Wellington’s Caleb McConnell submitted proposals which outlined a significant reform of the New Zealand tax system as part of a competition run by the Tax Policy Scholarships Charitable Trust (TPSCT).

Each will present to, and field questions from, a heavyweight judging panel comprising the following:

  • Robin Oliver, former Inland Revenue Deputy Commissioner
  • John Shewan, TPSCT and former PricewaterhouseCoopers Chair
  • John Whitehead, former Secretary of Treasury
  • Oliver Hartwich, New Zealand Initiative Executive Director
  • Joanne Hodge, former Bell Gully Tax Partner.

As well as GST on imports and CGT, other ideas to be discussed at Victoria University on 8 October are a system where company tax losses can be purchased and sold, and a schedular tax base to promote savings and growth.

Shewan says judges were impressed with the calibre of the 14 proposals they received.

“It was great to see applicants thinking outside of the square and promoting policy ideas to tackle huge challenges such as the inability of traditional taxes to cope with the digital economy.

“Applications reflected a wide range of ideas, from growth-oriented and tax base protection initiatives to corrective taxes to deal with problems such as runaway Auckland house prices, environmental issues and disparities in regional economic and population growth.”

The winner will receive $10,000 and the other finalists $2000.

Tax professionals under the age of 35 working in the public and private sector or academia in New Zealand were eligible to enter the competition.

Proposals had to take into account future challenges facing the New Zealand tax system and detail how they could simplify tax and reduce compliance costs for taxpayers.

The TPSCT was established in 2012 by Tax Management New Zealand and its founder director Ian Kuperus to encourage future tax policy leaders and support leading tax policy thinking in New Zealand.

The finalists

Jeremy Beckham

Age: 27

Occupation: Senior tax consultant – Deloitte

Proposal: Schedular tax base to promote savings and growth

Matthew Griffin

Age: 28

Occupation: General manager – Hobby Co

Proposal: GST on imports using software and behavioural economics

Caleb McConnell

Age: 24

Occupation: Solicitor – Chapman Tripp

Proposal: Purchase and sale of company tax losses

Peter North

Age: 23*

Occupation: Tax consultant (transfer pricing) – Ernst & Young

Proposal: Different approach to the treatment of houses under a capital gains tax

*Turns 24 on 25 July.

Industry heavyweights to judge young tax professionals’ ideas

Industry heavyweights to judge young tax professionals’ ideas 549 300 Taxpolicy

Four young tax professionals will present and debate their ideas for the future state of the tax system with respected industry figures in Wellington in October – and come away with an inflated bank balance.

The Tax Policy Scholarships Charitable Trust (TPSCT) is running a competition for young tax professionals working in the public and private sector and academia to showcase new ideas in tax policy or administration.

Finalists will give a presentation and field questions from the judges at Victoria University on 8 October.

The panel will comprise former Inland Revenue (IRD) Deputy Commissioner Robin Oliver, TPSCT and former PricewaterhouseCoopers Chair John Shewan, former Secretary of Treasury John Whitehead New Zealand Initiative Executive Director Oliver Hartwich, and former Bell Gully Tax Partner Joanne Hodge.

The winner will receive $10,000 and the other finalists $2000.

“Sound and innovative tax policy formulation is a critical ingredient to the development of a strong and resilient economy,” says Shewan.

“The Robin Oliver Tax Policy Scholarship Competition provides young professionals with a unique opportunity to promote creative policy ideas to tackle the many challenges that 21st century globally mobile and digitally dependent economies must face.”

Tax professionals under the age of 35 (at 1 January, 2015) are eligible to enter.

Entries close on 25 May. Finalists will be announced on 13 July.

Click here for competition guidelines and judging criteria.

About the TPSCT

The TPSCT was established by Tax Management NZ and its founder director Ian Kuperus to encourage future tax policy leaders and support leading tax policy thinking in New Zealand.

Previously, the Trust sponsored a leading international tax policy thinker to visit New Zealand to engage in debate and discussion, and a New Zealand tax professional to undertake research and study.

The Deputy Director of the International Monetary Fund’s Fiscal Affairs Department, Michael Keen, talked global tax policy issues with a select group of young tax professional in Wellington and Auckland last year.

Professor Alan Auerbach of the University of California, Berkeley was the first visiting lecturer in 2013, while the IRD’s Carolyn Palmer was the inaugural scholarship recipient