Tax, foreign investment and productivity – draft long-term insights briefing examines how New Zealand’s tax settings are likely to affect costs of capital (or hurdle rates of return) for investment into New Zealand and the consequent implications for inbound investment, productivity and economic performance. The analysis in the draft briefing is supported by a set of technical appendices, that provide further analytical detail on the formal models being used, as well as details on the implications of the formal modelling.

CA ANZ welcomes Inland Revenue undertaking this work. 

In CA ANZ’s view:

• The analysis should consider whether and how tax settings affect FDI.
• The analysis should take account of the work undertaken for the New Zealand Treasury long-term insights briefing.
• The work should be used to develop a forward-looking policy framework and should be broader and consistent with the Government’s policy developed in the Living Standards Framework.