Govt weighs up foreign fund free-for-all

Craig Stobo, who holds director roles and ownership stakes in various financial services companies, said Inland Revenue Department and other officials are currently “scoping out” the foreign tax proposals, which were approved for further investigation at the recent government 'jobs summit'.

The proposal for “exempting tax for non-residents that invest outside NZ via PIEs” was included in the Cabinet paper listing the viable ideas to emerge out of the February employment summit.

Stobo, the former head of BT Funds Management NZ, first floated the idea of a zero tax for foreigners investing in offshore assets last year in a paper titled 'Creating wealth for New Zealanders'.

In the paper, Stobo said the proposals had the potential to create “a vibrant funds management industry located in New Zealand with an international focus - with the relocation of fund managers incentivised by the tax changes”.