The Government’s claim that a TPP-enabled tax on foreign buyers would amount to a ban has been exposed as folly by tax experts, who say that in most cases a tax would apply to Kiwi buyers too, says Labour’s Trade and Export Growth spokesperson David Clark.
“EY tax partner Aaron Quintal and executive director David Snell’s article says New Zealand’s rights to tax foreign investors from TPP countries are overridden by double tax agreements, many of which require that a tax on foreigners from certain countries should apply to New Zealanders too if there’s a conflict.
“New Zealand has double tax agreements with all TPP countries apart from Peru and Brunei.
“This shows the Government’s pretence that the foreign buyers’ tax could effectively be a ban on foreign buyers was pure myth.
“The only way to cut foreign speculators out of the housing market and stop them driving up prices is by imposing a ban on them buying existing housing. It’s simple and effective. Sadly the Government refused to argue for this protection in TPP negotiations, despite other countries securing an exemption.
“National left New Zealanders high and dry in TPP negotiations. Meanwhile the housing crisis gets worse and worse,” says David Clark.