Government Closes Tax LoopholeFinance
"Legislation currently before Select Committee closes a loophole in the tax treatment of Superannuation Funds investing in Group Investment Funds" the Minister of Finance and Revenue, Rt Hon Bill Birch said today.
Currently Superannuation Funds can avoid paying tax that they would normally pay on income from share sales by investing in schemes such as TENZ. This is at odds with the tax treatment of companies and unit trusts.
"It is important that tax laws do not provide incentives for one type of investment vehicle over another. The changes proposed will mean that tax treatment is fair and neutral across investments" he said.
"Suggestions that this constituted a capital gains tax were mischievous" he added. "All the Government is doing is making sure that the tax system is fair and even handed."