Taxing Capital Gains: A Comparative Analysis and Lessons for New Zealand

(2017) 23(4) New Zealand Journal of Taxation Law and Policy 486-515

30 Pages Posted: 13 Dec 2017  

Chris Evans

University of New South Wales

Richard Krever

University of Western Australia Law School

Date Written: December 1, 2017

Abstract

New Zealand is currently the only member country of the Organisation for Economic Co-operation and Development (OECD) without a formal, comprehensive regime in place for taxing the capital gains made by its personal and corporate residents. Being the outlier is insufficient justification for introducing a capital gains tax (CGT) in New Zealand, but it does raise issues — relevant to the current debate as to whether a CGT should be introduced — about how this position has arisen and whether it needs to be addressed. This article explores the trends in taxation of capital gains around the world and identifies the reasons that CGT has been — after the ubiquitous value-added taxes — the most widely introduced tax in recent decades. Most importantly, it considers the question of whether New Zealand actually needs a CGT and examines world’s best practice, which might help to shape the design of such a tax in New Zealand if it is concluded that a CGT is required.

Suggested Citation

Evans, Christopher Charles and Krever, Richard, Taxing Capital Gains: A Comparative Analysis and Lessons for New Zealand (December 1, 2017). (2017) 23(4) New Zealand Journal of Taxation Law and Policy 486-515. Available at SSRN: https://ssrn.com/abstract=3085713

Christopher Charles Evans

University of New South Wales ( email )

School of Taxation and Business Law
Australian School of Business, UNSW
Sydney, NSW 2052
Australia

Richard Krever (Contact Author)

University of Western Australia Law School ( email )

M253
35 Stirling Highway
Crawley, Western Australia 6009
Australia

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