FOREWORD
JONATHAN BARRETT GUEST EDITOR
This special edition of the Journal of Australian Taxation arose from a conversation between Lisa Marriott, the President of the Australasian Tax Teachers Association, and the editors of this journal, John McLaren and John Passant, at the 2019 ATTA conference in Perth. After discussing New Zealand’s impending Tax Working Group (‘TWG’) report, they concluded that the TWG’s recommendations were likely to be of interest beyond New Zealand. They invited me to edit this special edition. We think the articles in this special edition will indeed be of interest to readers in Australia, New Zealand and beyond.
While the TWG’s key recommendation — a comprehensive capital gains tax (‘CGT’) — was not taken up by the government, its final report is significant in other regards and may have a long-term influence on tax policy and debate in New Zealand and overseas. In addition to following the usual benchmarks for a good tax system, the TWG sought to incorporate Te Ao Māori (a Māori worldview) and Treasury’s Living Standards Framework (‘LSF’). It also adopted the concept of a circular economy.
The succinct articles in this special edition of the journal analyse key features of the TWG’s report. The authors, who are mostly emerging tax scholars, bring original perspectives and critical insights to the issues raised.
One of the most significant features of the TWG’s work was its recognition that government, as a Treaty of Waitangi partner, must incorporate Te Ao Māori when developing tax policy. Matthew Scobie (Kāi Tahu) and Tyron Rakeiora Love (Te Ātiawa) provide an Indigenous perspective on this imperative, but warn against tokenism. The authors conclude:
Achievement of genuine government–iwi partnership requires clear and concise strategies that communicate to the public why Māori engagement in developing tax policy is not just an obligation on the Crown under the Treaty, it is a process that will bring positive outcomes for all New Zealanders.
Alison Pavlovich unpacks Treasury’s LSF in relation to the TWG and emphasises, in particular, pursuit of intergenerational equity. Alison places the TWG and its adoption of Te Ao Māori and the LSF in the historical context of previous tax reviews. She concludes that substantive intergenerational equity indicates the need for a CGT and significant environmental taxes.
Kathleen Makale and I analyse the TWG’s endorsement of the radical environmentalism of a circular economy. We draw on the work of Kate Raworth, in particular, to show how taxes could contribute meaningfully to New Zealand meeting its commitments under the Paris Agreement. However, the analysis also takes account of the country’s reliance on agriculture and the power of the dairy lobby.
Suzy Morrissey provides a feminist critique of the TWG and its failure to take proper account of the experience of women and taxation. Suzy draws on TWG supporting documents that few of us will have read and situates them in a narrative of a decline in rigorous fiscal research into gender. Nevertheless, she expresses optimism that the more nuanced approach of the TWG may lead to proper consideration of gender and taxation in the future.
Andrew Maples and Sue Yong analyse the TWG’s CGT recommendation and its rejection. A comprehensive CGT was supported by the Labour and Green components of the government, but was vetoed by New Zealand First, a small but pivotal populist party. A once in a generation opportunity to introduce an equitable and practicable CGT appears to have been lost. Nevertheless, we can expect a CGT to feature in future tax debate and reviews — Andrew and Sue explain why a CGT is a necessity for New Zealand.
Coterminous with the TWG’s review of the overall tax system, Inland Revenue investigated the possibility of a digital services tax (‘DST’). Ben Walker critically examines the DST proposal. Ben draws on German language texts, among other sources, to analyse the premises on which the DST is based. He questions whether highly digitalised businesses really do pay less tax than other multinational enterprises, and cautions against New Zealand taking unilateral action on possibly unreliable premises.
I was pleased to take up the offer to be guest editor of this special edition but, of course, a project such as this is a team effort. In particular, I would like to thank Lisa and the editors for their support, the authors, the reviewers, Barbara Graham for her careful editing, and the Wellington School of Business and Government for a funding grant. We hope you find the articles stimulating and enjoyable.
Ngā mihi nui
Jonathan
Issue 02 – DOWNLOAD IN FULL
Volume 21, Issue 02 – NZ Special Edition
Articles
Volume 21, Issue 02, Article 01 – Scobie and Love: THE TREATY AND THE TAX WORKING GROUP: TIKANGA OR TOKENISTIC GESTURES?
Volume 21, Issue 02, Article 02 – Pavlovich: STRIVING FOR INTERGENERATIONAL WELLBEING
Volume 21, Issue 02, Article 03 – Barrett and Makale: THE ENVIRONMENT IS NOT AN EXTERNALITY: THE CIRCULAR ECONOMY AND THE TAX WORKING GROUP
Volume 21, Issue 02, Article 04 – Morrissey: WOMEN AND THE TAX WORKING GROUP
Volume 21, Issue 02, Article 05 – Maples & Yong: THE TAX WORKING GROUP AND CAPITAL GAINS TAX IN NEW ZEALAND — A MISSED OPPORTUNITY?
Volume 21, Issue 02, Article 06 – Walker: ANALYSING NEW ZEALAND’S DIGITAL SERVICES TAX PROPOSAL