Thousands of submissions pour in to tax committee

A mountain of submissions have been received by the select committee examining planned new tax rules on overseas shareholdings.

It was revealed yesterday that 3681 submissions have been made, when typically a tax bill would attract around 50.

About 37 hours have been set aside to hear the submissions.

National MP John Key yesterday argued that the big response indicated an "overwhelming level of concern" about the Government introducing a capital gains tax on savings.

The tax bill makes some taxpayer-friendly changes to the treatment of investment in New Zealand and Australia, but it also introduces a capital gains tax on shares held directly or through passive funds in British, US, Japanese, German, Canadian, Norwegian and Spanish companies.

Mr Key released Inland Revenue estimates that about 20,000 people who have shares in companies in those countries will be hit by the tax.

He said that there would also be more, because anyone who had savings in funds which directly or indirectly made passive investments in those countries would also be affected.