ISI submits tax reform

The Investment Savings and Insurance Association (ISI) has presented its tax reform proposals to the leaders of the major political parties as a platfom for discussion.

Head of the ISI, Vance Arkinstall, says a series of meetings with politicians from the major parties has been scheduled to look at the issues highlighted by the ISI tax report.

Tax reform is looming as one of the big issues of this year's general election due in November.

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The ISI is also liaising with the Inland Revenue Department (IRD) in an investigation of the tax position of life insurance companies.

"The IRD is investigating the assumptions life insurance companies make when declaring tax liabilities," Arkinstall says.

"It may want to institute practice standards or it might seek legislative changes."

He says the Government actuary will soon release a report looking at tax on life companies which should "be some guide on the issues".

The IRD is also considering whether financial advisers are liable to pay withholding tax on their income or need to seek an exemption from doing so.

"I'm surprised the IRD see this as an issue as I'm sure all adviser income would be declared in one way or another," Arkinstall says.

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