Archive for the ‘IRD’ Category

New Zealand – a 3rd world country?

December 10, 2007

New Zealand, a third world country?

Some 60 years ago, New Zealand was the envy of the world.

We had a booming economy, and a happy people with hardly a worry in the world.

What has happened since then?

q       Our economy has collapsed to the point where it is only Agriculture keeping us afloat. Even this may change as our largest company, Fonterra, is suggesting that it goes public and allows overseas investors to buy into it.

q       The entire public infrastructure that was built up over the life of New Zealand was sold off at bargain prices to the International asset strippers. Now we are in a position where the infrastructure is (has) collapsed and now the NZ Government is required to rebuild it, almost from scratch. NZ Rail, Telecom, Air NZ, etc, etc.

q       The social services sector has suffered very badly over the years. Hospitals have been shut almost everywhere except for the larger cities. We are unable to attract and keep competent doctors and nurses, as we do not have the resources or money to keep them in the county.

q       The educated youth of the country are leaving in droves, and probably will never come back because of the enormous debts that the Government causes students to attach to themselves to get an education.

q       The tax system is such that you are required to hire accountants and tax lawyers just to keep your affairs in order. The compounding interest and draconian attitudes taken by the IRD towards mistakes generated by the small businesses ensures that NZ has one of the highest failure rates for small businesses in the world.

q       In 2006 40,000 Kiwi’s voted with their feet and moved permanently to Australia, and the Government wonders why.

q       In the last 2 decades all our large successful companies have either moved offshore totally or at least a major part of their operations have, and most of our multi-millionaires have departed for greener pastures.

q       Corruption and self-serving interest is now rife throughout the corridors of power, and very visible to the public. One MP is before the High Court on charges of bribery and corruption; another is facing a charge of assault. Even though it is on public record that the assault happened, he denies it in court. The old saying about power corrupts has been proved time and again in the last decade or so in New Zealand.

So is New Zealand a Third World Country?

In my view it is, and it is likely to get worse before it gets better.

We need a visionary leader who will fire the imagination of the people and business alike. At the moment such a leader does not appear to be anywhere on the horizon, and unless one appears within the next decade with the drive and determination to make New Zealand relevant in today’s world, we will slide further and further into poverty, both in terms of assets and skills.




World of greed

June 19, 2006

We live in a world of greed, where the rich get richer and everyone else is treated as a slave. Is this how we are meant to live and interact with each other? It is my view that this is not the case.

The human race initially consisted of family groups, moving to tribal and eventually a village society. Once the collection of people became too large for everyone to know each other, at least by sight, an opportunity arose for human predators to become active. In today’s society where neighbour does not know neighbour, these predators flourish at society’s expense.

Some of these predators are real people such as con men, tricksters and fraudsters. They operate by manipulating people’s trust and general greed and stupidity. It has been shown to be impossible to protect people against themselves. Continual moving from victim to victim is the hallmark of this type of predator.

The most common type of predator is the one that continually manipulates society to ensure that it can predate upon society without getting tarred and feathered and removed from society. We all know who these predators are, the Government, banks, big business and all the so-called quasi government organizations that virtually control society without any mandate from society even to exist.

Banks are a case in point. Originally set up as a safe repository of the nations cash, they are effectively trying to remove cash completely from our society. The increased reliance upon electronic financial transactions and the fact that you are actually charged for depositing or withdrawing the legal currency of the land must indicate that cash has a finite life within society. The question that must be asked is “Why should cash disappear?” The major reason appears to be the ability to maintain control over society as a whole. The IRD has maintained that the black untaxed economy has been growing enormously in the last ten years or so. This black economy survives by the use of untraceable cash. Therefore, the theory goes that if there is no cash, all financial transactions must take place through a bank, the black economy will disappear, and therefore the IRD will increase the overall tax take and personal tax rates will fall. This is a load of hogwash, as a report commissioned by the IRD found that reducing monetary control and tax rates increased the overall tax take.

The present tax laws are recognised as being extremely convoluted, ambiguous and draconian in their application. However, our elected government seems to have no will (or ability) to scrap all the present legislation and come up with a very simple system that applies to everyone equally. Such a system could be based on a 1% transaction tax for all amounts transferred into and out of a bank account. This would also include the banks and businesses that use the Reserve Bank and other facilities to balance their books on a daily basis. This amounts to multi-millions of dollars every day, and yet financial transactions such of these are exempt from any form of taxation. Individual accounts are already monitored to pay the taxman, so why not the corporate’s?