12th Jul 2006 17:05
Guinness Peat Group PLC12 July 2006 GUINNESS PEAT GROUP PLC ANNOUNCEMENT The following is the text of a letter posted today to GPG Shareholders whoseshares are registered on the New Zealand Register. Copies, for information, are also being sent to GPG's Shareholders registered onthe UK and Australian share register. "12 July 2006 Dear Shareholder Update on Proposed Tax Changes for New Zealand Shareholders GPG has recently completed its submissions on the proposed tax legislation andfiled those submissions with the New Zealand Finance and Expenditure SelectCommittee. The five year "holiday" from the proposed regime is in the draft legislation andis not under threat. However, as I have said from the start, we are philosophically opposed to theconcept of a capital gains tax and will continue to make that point to theGovernment. GPG has submitted, first, that the grey list should be retained and thatindividuals, trusts, companies and managed funds should be treated as holdingall shares in grey list countries on capital account. This is far more positivethan the Government's proposals to limit that capital account treatment toshares in New Zealand and Australian companies. I believe that this submission if accepted would have a dramatic and positiveeffect on the way that New Zealanders perceive equity investment, relative toinvestment in residential property for example. It would also provide aplatform for New Zealand to develop a funds management industry attractive toglobal investors. GPG's second submission is broadly to retain the grey list and the current rulesin relation to whether shares are held on capital account or not. If the first or second submission is accepted, the five year holiday will nolonger be relevant. However, if the first and second submissions are notaccepted, GPG's New Zealand shareholders will need the five year holiday. GPGin its third submission calls for all New Zealand GPG shareholders to be treatedconsistently in respect of their GPG shares for the five year holiday. GPGunderstood that the five year holiday would mean that managed funds would allhold their GPG shares on capital account. That is not the case in the draftlegislation to date. It is a point I feel very strongly about and I willendeavour to get the Select Committee to support the agreement we thought wealready had on this point. An executive summary and the full submissions can be found on our New Zealandwebsite www.gpg.co.nz I shall be presenting orally to the Select Committee. I am sure that many of youhave made written submissions and will also be appearing before the SelectCommittee. Once again, thank you for all of your support on these issues." Richard RussellCompany SecretaryGuinness Peat Group plcTel: 020 7484 3370 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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