Tax guide a worry for N.Z. expatriates

Press, 4 July 1983, Page 8

Tax guide a worry for N.Z. expatriates

NZPA staff correspondent Hong Kong

A new tax guide for nonresidents issued by the New Zealand Inland Revenue Department has caused concern among expatriate New Zealanders working in Hong Kong. A High Court judge, Mr Ross Penlington, one of many New Zealanders working in the Hong Kong Judiciary, said he was asked to look into the matter by the New Zealand Society of Hong Kong. The tax guide indicates that non-resident New Zea-

landers who return to the country for more than 28 days may become liable for tax on their earnings in New Zealand and Hong Kong, he said. Since many of the New Zealanders in Hong Kong are on Government and company contracts which provide for six weeks home leave, a good number prefer to spend their holidays in New Zealand. “I have looked at all the authorities,” Mr Penlington said. “I don’t think New Zealanders living here have anything to worry about, provided they have an in-

tention to return to Hong Kong at the end of their leave.”

However, he said, the New Zealand department had very wide discretionary powers.

“If it decides to interpret something in a particular way, its interpretation becomes law,” he said. Mr Penlington has suggested that the society, which represents several hundred of what is thought to be about 4000 New Zealanders in Hong iKong, should write to the Inland Revenue authorities seeking clarification of the guide.