New Zealand’s government is likely to receive higher revenues from corporate tax this year than originally estimated despite growing insurance liabilities from its accident compensation corporation (ACC) scheme, as it collects more from the portfolio investment entities (PIE) scheme first introduced in 2007.
Figures for the 11 months to 31 May show total tax revenues of NZ$50.54bn (US$40.5bn) against the Treasury’s forecast if NZ$49.87bn. Corporate tax revenues were 5.1% higher than forecast, with net terminal tax assessments and PIE tax NZ$200m ahead of expectations.
“This is encouraging, but the global environment remains uncertain, leading to a number of fluctuations in the tax take from month to month,” said the Finance Minister, Bill English. “This month’s accounts continue to be better than forecast, due to ongoing spending discipline and better than expected goods and service tax [GST]and corporate results. But revenue is still NZ$835m below Treasury’s forecast in the pre-election update last October.
“These fluctuations reinforce the need for the government to keep a firm control on its costs, so that it can stay on track to surplus by 2014-15. We have seen moderate strength in the economy over the past year despite considerable disruption from global uncertainty.
“Balancing the books and returning to surplus is one of the most important things the government can do to build that resilience, as well as take pressure off interest rates and the exchange rate. This helps make our economy more competitive.”
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.
With rising interest rates being a hot topic at this year’s AFP conference, many treasurers were discussing how they can structure their ... read more