Revenue Minister Peter Dunne today welcomed the Inland Revenue Department's briefing to the incoming Government as a 'constructive contribution to the government's work on tax issues'.

"The Commissioner of Inland Revenue points out that New Zealand's substantial company tax base is at risk because of our relatively high reliance on corporate tax as a revenue source and the relatively high foreign ownership of companies," he said.

"He also says we have to regain our competitive tax advantage over Australia, which means the future of the trans-Tasman tax relationship needs to be considered as a matter of priority.

"This is entirely consistent with the confidence and supply agreement United Future and Labour signed which says there will be 'a review of the current business taxation regimes with the view of ensuring the system works to give better incentives for productivity gains and improved competitiveness with Australia'," said Mr Dunne.

Mr Dunne noted that the latest report from the think tank, the New Zealand Institute, pointed to the need for New Zealand to improve its labour force productivity dramatically if it wishes to rise in the OECD standings and improve living standards.

"The review I am leading will address all these issues," said Mr Dunne.

The briefing is available online at www.taxpolicy.ird.govt.nz

Contact:Ted Sheehan
Chief Press Secretary to Hon Peter Dunne
Tel: 04 470 6985
Cell: 021 638 920