1 00:00:00,120 --> 00:00:02,400 Speaker 1: Capital gains tax is back in the news. A and 2 00:00:02,560 --> 00:00:06,000 Speaker 1: Z CEO Antonia Watson says that she supports one. If 3 00:00:06,000 --> 00:00:07,800 Speaker 1: someone had the courage to do it, I wouldn't be 4 00:00:07,880 --> 00:00:09,800 Speaker 1: jumping out of bed with joy, But in terms of 5 00:00:09,800 --> 00:00:13,080 Speaker 1: the overall fairness, it's probably a fair way to tax 6 00:00:13,119 --> 00:00:16,159 Speaker 1: another part of income in this economy. Antonia was not 7 00:00:16,160 --> 00:00:18,520 Speaker 1: available to speak with us about it. Am Z told 8 00:00:18,600 --> 00:00:21,079 Speaker 1: us this is her personal opinion, not the bank's opinion. 9 00:00:21,160 --> 00:00:24,760 Speaker 1: PwC tax partner Sandy Low joins us now on this, say, Sandy. 10 00:00:25,520 --> 00:00:27,000 Speaker 2: Good afternoon, why would a. 11 00:00:26,960 --> 00:00:28,640 Speaker 1: Bank CEO endorse the CGT. 12 00:00:29,920 --> 00:00:34,800 Speaker 2: Look. I think around cavill gaines tax has been around 13 00:00:34,800 --> 00:00:38,120 Speaker 2: for quite a while, and over the last few years, 14 00:00:38,159 --> 00:00:40,720 Speaker 2: in particular the last couple of elections, there's been a 15 00:00:40,800 --> 00:00:44,159 Speaker 2: much more discussion around it, and I guess if we 16 00:00:44,200 --> 00:00:48,879 Speaker 2: look ahead at New Zealand in general, including some of 17 00:00:48,880 --> 00:00:52,600 Speaker 2: the key factors like our changing demographics, and thinking about 18 00:00:53,600 --> 00:00:56,240 Speaker 2: the level of tax that we're collecting, it's one of 19 00:00:56,280 --> 00:01:01,720 Speaker 2: the topics. The more more because as the country needs 20 00:01:01,720 --> 00:01:06,280 Speaker 2: to grapple with making sure we are connect collecting enough 21 00:01:06,440 --> 00:01:10,720 Speaker 2: tax to meet the extended our expended to needs. In 22 00:01:10,760 --> 00:01:14,479 Speaker 2: the most efficient manner. So that's why lots more people 23 00:01:14,520 --> 00:01:17,120 Speaker 2: are thinking and talking about it. Is it? 24 00:01:17,160 --> 00:01:18,920 Speaker 1: I mean, look, the thing is sandy in terms of 25 00:01:18,959 --> 00:01:20,880 Speaker 1: our actual tax revenue, right, it's not going to bring 26 00:01:20,880 --> 00:01:22,319 Speaker 1: that much. Is less than what like, it's less than 27 00:01:22,400 --> 00:01:25,200 Speaker 1: half of one percent. It's really hard to comply with. 28 00:01:25,280 --> 00:01:28,319 Speaker 1: It's really hard to collect. Is this just a case 29 00:01:28,319 --> 00:01:30,120 Speaker 1: of people wanting to get on the right side of 30 00:01:30,600 --> 00:01:31,840 Speaker 1: history on this one? 31 00:01:33,840 --> 00:01:38,080 Speaker 2: I think in terms of thinking about the overall tax system, 32 00:01:38,319 --> 00:01:41,440 Speaker 2: and I think it's actually one of the questions that 33 00:01:41,480 --> 00:01:43,640 Speaker 2: in a revenue is going to be thinking about as 34 00:01:43,640 --> 00:01:47,480 Speaker 2: part of their long term insights. Brief thing which is 35 00:01:47,520 --> 00:01:50,600 Speaker 2: actually thinking about this? Does New Zealand's tax system from 36 00:01:50,600 --> 00:01:53,680 Speaker 2: a structural perspective? Is it going to meet this future needs? 37 00:01:53,680 --> 00:01:56,760 Speaker 2: And I think that's the piece around it. And I 38 00:01:56,760 --> 00:01:59,000 Speaker 2: don't think having a capital gains tax that's going to 39 00:01:59,040 --> 00:02:02,880 Speaker 2: be the Silla bullets are to stake and they will 40 00:02:02,920 --> 00:02:04,920 Speaker 2: fix all the problems, but it may be one of 41 00:02:04,920 --> 00:02:07,600 Speaker 2: the few things that needs to be done to make 42 00:02:07,640 --> 00:02:11,160 Speaker 2: sure that our tax system continues to be fit for 43 00:02:11,240 --> 00:02:14,919 Speaker 2: the future as we go ahead to go along for 44 00:02:15,040 --> 00:02:16,840 Speaker 2: a long time, let's. 45 00:02:16,639 --> 00:02:19,440 Speaker 1: Say Sandy for the purposes of this exercise. You are 46 00:02:19,480 --> 00:02:21,960 Speaker 1: the Finance minister and you're so popular that you do 47 00:02:22,080 --> 00:02:24,760 Speaker 1: anything you want. Would you introduce the CGT. 48 00:02:25,840 --> 00:02:28,160 Speaker 2: Look, I think there's a bunch of different options that 49 00:02:28,200 --> 00:02:29,760 Speaker 2: are put on the tip, that could be put on 50 00:02:29,800 --> 00:02:32,200 Speaker 2: the table, and I think it's ultimately always going to 51 00:02:32,200 --> 00:02:34,200 Speaker 2: be a balancing act, right And I think one of 52 00:02:34,280 --> 00:02:37,360 Speaker 2: the things that we have seen is in particular in 53 00:02:37,440 --> 00:02:41,280 Speaker 2: the last government, was around that discussion of something alternative 54 00:02:41,360 --> 00:02:44,600 Speaker 2: to a capital against tax, which was discussion around wealth taxes. 55 00:02:44,639 --> 00:02:48,840 Speaker 2: So I guess the key thing is looking at it, 56 00:02:48,880 --> 00:02:54,400 Speaker 2: and ultimately we have taxes is to make sure that 57 00:02:54,440 --> 00:02:57,840 Speaker 2: we generate enough the government can can link enough revenue 58 00:02:57,840 --> 00:03:01,160 Speaker 2: in the most efficient manner. So it's thinking about is 59 00:03:01,200 --> 00:03:03,919 Speaker 2: this the best way to collect the amount of cash 60 00:03:03,960 --> 00:03:08,040 Speaker 2: that the government needs And if Keple's gains text might 61 00:03:08,080 --> 00:03:09,519 Speaker 2: be one of the ones that's in the mixt, I 62 00:03:09,600 --> 00:03:10,440 Speaker 2: think about. 63 00:03:11,040 --> 00:03:15,000 Speaker 1: Okay, Sandy, Thank you very much, Sandy Loo PwC text partner. 64 00:03:15,760 --> 00:03:18,919 Speaker 1: For more from Hither Duplessy Allen Drive, listen live to 65 00:03:19,040 --> 00:03:22,080 Speaker 1: news talks it'd be from four pm weekdays, or follow 66 00:03:22,120 --> 00:03:23,880 Speaker 1: the podcast on iHeartRadio.