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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (8449)	8/20/2006 4:11:35 PM
From: Moominoid	Read Replies (1) \| Respond to of 217734

"The tax will be payable on unrealised gains with the option for a cap of 5% of the opening value of the investments in each year. The balance would be carried forward until the investment is sold and not reinvested (repatriated). At this point, tax on gains which have been carried forward would be payable." moneyonline.co.nz I don't see anything on retroactiveness in the various pages I found online. If that is the case that there is no retroactivity once you have sold before the the policy comes in (if it does), it makes sense to sell now and perhaps reinvest overseas later. "Investors with money overseas directly, or via New Zealand-domiciled collective funds, in shares, will need to pay capital gains tax on 85 per cent of the rise in the fund or share price over the previous 12 months - whether or not they have sold. " subs.nzherald.co.nz This one suggests there is nothing to worry about really - yes there will CGT on future unrealised gains but not on past ones. Australia's FIF legislation only applies to mutual funds and similar managed investment vehicles. It taxes unrealized gains in foreign mutual funds though there are a bunch of exemptions. It is clearly to protect the Aussie mutual fund industry. It doesn't apply to direct ownership of foreign securities. By the way, Israel started off with CGT on foreign investments only first and then gradually extended it. Anyway it does sound like a poorly thought out and poorly explained shambles.

To: Elroy Jetson who wrote (8449)	8/21/2006 12:39:23 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 217734

Elroy, apologies. It's not a 5% of market value each year, it's dividends up to however much is paid plus up to a total, including dividends, of 5% of 85% of any capital gain. Or something like that. I see David has hooked out some better information than the garbled comments I'm giving. I'll go and read it. Mqurice PS: Thanks David. As you say, the retroactive part seems to have been ditched as over the top.