​BusinessNZ has estimated a capital gains tax would cost $5 billion over five years in compliance costs, administrative costs and "deadweight costs". Yes, professor Chris Evans is quoted by BusinessNZ in its CGT report as saying "compliance costs are high and significant; compliance costs are regressive; and compliance costs are not reducing over time." STUFF Sir Michael Cullen is dubious about the biggest component of BusinessNZ's cost calculation the "deadweight cost" of taxation. Just to muddy the waters further, he said it was not possible to predict compliance costs "with any confidence". Business NZ reckons a CGT would cost Inland Revenue $210m to collect over five years, but that hangs off its assumption it would cost $1.6b in "compliance costs".

Source: Stuff April 05, 2019 19:00 UTC