Abstract

Compared to many developed countries, New Zealand’s tax system is relatively simple, coherent and transparent. Why is this so? A number of reasons may underlie this, including New Zealand’s constitutional structure (operating with a unicameral Parliament, having a single House of Representatives, in which the New Zealand Government in conjunction with its coalition partners, holds a majority), coupled with a unitary State (which eliminates the issues that frequently arise in a Federal system). A further reason may be attributed to the relatively transparent and coherent public sector, to which the private sector has ready access, not only through making submissions, but also being able to discuss issues and share information (where permitted), which is facilitated by the small population and transparent and coherent tax policy process.

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