Tax loopholes tightened

Press, 13 December 1982, Page 11

Tax loopholes tightened

Parliamentary reporter The definition of "financial institution" has been tightened by legislation introduced in Parliament to ensure that these institutions are caught by the taxation mesh. The Reserve Bank of New Zealand Amendment Bill has been introduced and referred to Parliament’s Public Expenditure Committee. The committee will hear evidence and report back on the bill so that it can pass through Parliament in all stages before the House rises for the holiday recess on December 17. The need for such haste was questioned by Mr D. F. Caygill (Lab.. St Albans). ft was important to catch everyone slipping through the mesh as quickly as pos-

sible. said the Prime Minister. Mr Muldoon. To wait until mid-1983, so that the bill could be studied over the summer recess, would take too long, he said. The bill was not a major one. but would make it a little easier to administer the controls in a more flexible manner. Having redefined “financial institutions," the bill empowers the Reserve Bank to give directions to the trading banks as to the policy to be followed over four matters: ® Acceptances. • Minimum or maximum rates of discount (as opposed to rates of discount). • Minimum or maximum rates of interest (as opposed to interest). • Maximum charges for acceptances.