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Business valuations
We offer expert valuation advice in transactions, regulatory and administrative matters, and matters subject to dispute – valuing businesses, shares and intangible assets in a wide range of industries.
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Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
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Complex and international services
Our experience of multi-jurisdictional insolvencies coupled with our international reputation allows us to deliver the best possible outcome for all stakeholders.
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Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
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Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
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Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
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Financial models
A sound financial model will help you understand the impact of your decisions before you make them. Talk to us about our user-friendly models.
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Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
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Independent business review
Is your business viable? Will it remain viable in the future? A thorough independent business review can help your organisation answer these fundamental questions.
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IT forensics
Effective ESI analysis is integral to the success of your business. Our IT forensics experts have the technical expertise to identify, preserve and interrogate electronic data.
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Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
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Raising finance
Raising finance - funders value partners who can deliver a robust financial model, a sound business strategy and rigorous planning. We can guide you through the challenges that these transactions can pose and help you build a foundation for long term success once the deal is done.
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Relationship property services
Grant Thornton offers high quality independent advice on the many financial issues associated with relationship property from considering an individual financial issue to all aspects of a complex settlement.
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Restructuring and turnaround
Grant Thornton’s restructuring and turnaround service capabilities include cash flow, liquidity management and forecasting; crisis and interim management; financial advisory services to companies and parties in transition and distress
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Transaction advisory
Our depth of market knowledge will steer you through the transaction process. Grant Thornton’s dynamic teams offer range of financial, commercial and operational expertise.
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Virtual asset advisory
Helping you navigate the world of virtual currencies and decentralised financial systems.
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Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
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Employment tax
Grant Thornton’s advisers can help you with PAYE (payroll tax), Kiwisaver, fringe benefits tax (FBT), student loans, global mobility services, international tax
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Global mobility services
Our team can help expatriates and their employers deal with tax and employment matters both in New Zealand and overseas. With the correct planning advice, employee allowances and benefits may be structured to avoid double taxation and achieve tax savings.
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GST
GST has the potential to become a minefield and can be expensive when it goes wrong. Our technical knowledge can help you minimise the negative impact of GST
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International tax
International tax rules are undergoing their biggest change in a generation. Tax authorities around the world are increasingly vigilant, especially when it comes to global operations.
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Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
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Tax compliance
Our advisers help clients manage the critical issue of compliance across accountancy regulations, corporation law and tax. We also offer business and wealth advisory services, which means we can provide a seamless and tax-effective offering to our clients.
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Tax governance
Mitigate tax risks and implement best practice governance that will stand up to IRD scrutiny and audits.
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Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
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Audit methodology
Our five step audit methodology offers a high quality service wherever you are in the world and includes planning, risk assessment, testing internal controls, substantive testing, and concluding and reporting
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Audit technology
We apply our audit methodology with an integrated set of software tools known as the Voyager suite. Our technology has been developed to produce quality audits that are effective and efficient.
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Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
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Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
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Cloud services
Leverage the cloud to keep your data safe, operate more efficiently, reduce costs and create a better experience for your employees and clients.
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Internal audit
Our internal audits deliver independent assurance over key controls within your riskiest processes, proving what works and what doesn’t and recommending improvements.
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IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
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IT privacy and security
IT privacy and security should support your business strategy. Our pragmatic approach focuses on reducing cyber security risks specific to your organisation
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Payroll assurance
Our specialist payroll assurance team can conduct a review of your payroll system configuration and processes, and then help you and your team to implement any necessary recalculations.
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PCI DSS
Our information security specialists are approved Qualified Security Assessors (QSAs) that have been qualified by the PCI Security Standards Council to independently assess merchants and service providers.
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Process improvement
As your organisation grows in size and complexity, processes that were once enabling often become cumbersome and inefficient. To maintain growth, your business must remain flexible, agile and profitable
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Procurement/supply chain
Procurement and supply chain inputs will often dominate your balance sheet and constantly evolve for organisations to remain competitive and meet changing customer requirements
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Project assurance
Major programmes and projects expose you to significant financial and reputational risk throughout their life cycle. Don’t let these risks become a reality.
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Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
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Robotic process automation (RPA)
RPA is emerging as the most sophisticated form of automation used to help businesses become more agile and remain competitive in the face of today’s ongoing digital disruption.
Budget 2013: Threat of capital gains tax will impact the government agenda
Threat of capital gains tax will impact the government agenda
If there is one certainty, it is that capital gains tax (CGT) has moved from a principled tax policy decision to one of politics. The government has categorically confirmed that an official capital gains tax will not be introduced on their watch: why would they when there are so many “CGT by stealth” rules already in existence and little revenue would be earned for up to 15 years.
On the other hand, Labour has included a CGT as a central plank of their tax policy. And with the potential for the next election to be a knife edge of left and right coalitions, the long-dreaded introduction of CGT regime is a very real possibility.
This overlay will have an effect on the listing of the shares in Mighty River Power (MRP) today. Whilst most of the focus has been on the reduced uptake of shares due to the Left coalition’s policy statement on the future of the electricity market, the uncertainty of the impact of a CGT on shares will also influence the uptake. Likewise for those who have taken up the shares, the threat of a CGT regime could also have a direct effect on the Government’s desire for shareholders to hold onto their shares.
Firstly, if shareholders feel that a CGT regime will mean any gains made on the sale of the shares would be taxable, they may be more inclined to take a short-term view of their shareholding and sell their shares at the earliest possible opportunity. Of course, if shares are acquired with the intention of disposal, that gain will be taxable anyway.
Secondly, for a more sophisticated purchaser, an understanding of CGT regimes will indicate that most regimes when they are introduced include grandfathering provisions. That is, assets acquired prior to the introduction of the regime are protected and will not be subject to CGT when they are sold. However, if they are sold and replaced with another capital asset, that asset will be fully subject to CGT. As a result there typically is a freeze on the sale of these protected assets through people not wanting to sell them. A long-term hold, therefore, is exactly what the Government is after for the MRP shares.
The MRP share dichotomy reflects the afflicting issues CGT regimes bring when they are introduced. While there are good policy reasons, their distortionary effect on the market and lack of immediate cash flow questions the rationale for its introduction.
A range of market effects arise on the introduction of a CGT regime, depending on the policy decisions at the time. The structure of the regime needs to be determined, but will usually include protection of pre-CGT regime assets, rollover relief (if assets are sold and new ones bought the CGT liability will be rolled forward until the assets are finally sold), tax is not collected until the assets are sold (realised basis versus unrealised), and some adjustments are made for inflationary effect (tax should not be levied on inflation lifts only real rise in value).
All of these distort the normal impacts of the market. A large group of assets become locked up as people hold onto their assets with protected status. Normal market transactions become compromised when, instead of realising investments, owners must buy further assets simply to avoid triggering their ultimate CGT liability. This of course may be beneficial if they were to be invested in productive assets, and at worst may encourage continued savings in investment assets. However, the rules also typically introduce a range of negative behaviours, where schemes abound to try and get around the rules.
So when New Zealand is keenly in need of a lift through business investment and growth, the threat of a capital tax regime may have a dampening effect on market behaviours. The last thing New Zealand needs right now is for the desire for investment to be tempered by a potential tax liability. The MRP share float may provide an interesting insight into these effects.
Further enquiries, please contact:
Greg Thompson
Grant Thornton New Zealand National Director and Partner, Tax
T +64 4 495 3775
E greg.thompson@nz.gt.com