17th May 2006 16:12
Guinness Peat Group PLC17 May 2006 GUINNESS PEAT GROUP PLC ANNOUNCEMENT The following is the text of an announcement made by Guinness Peat Group plc ('GPG' or 'the Company') today on the New Zealand Stock Exchange. Thisannouncement follows a letter sent by the Company to its shareholders on 4 May2006 in connection with certain taxation proposals made by the New Zealandgovernment. This concerned the New Zealand government's proposals regardinglocal tax rules on share investments. The government has now made certainamendments which are expected to benefit New Zealanders with shareholdings inoverseas investments such as GPG. "GPG director Tony Gibbs today welcomed the New Zealand government'sannouncement that New Zealand shareholders in GPG will be granted a five year 'holiday' from the proposed New Zealand tax regime for offshore shareinvestments. The 'holiday' for New Zealand shareholders in GPG will mean that individuals,companies and trusts which invest directly in GPG who do not actively tradetheir shares will continue to be taxed in New Zealand on dividends only. Untilat least 31 March 2012 New Zealand shareholders in GPG will pay no more tax inrespect of their GPG shares than under current law. The five year holiday gives time for the government to review New Zealand's CFC(controlled foreign company) regime and for GPG to look at restructuring optionsonce a new CFC regime is in place. GPG has at this time formed no particularview as to the outcome of any review and analysis. 'This is great news for our 28,500 New Zealand shareholders many of whom haveexpressed their views to the government. It is also heartening that thegovernment has listened and has recognized the significance of GPG to NewZealand' said Tony Gibbs. 'I have been impressed that both Ministers and officials have continued to keepan open dialogue with GPG in an attempt to resolve this issue and on behalf ofour shareholders I thank them for this.' 'I would like to thank all the hundreds of GPG shareholders who have taken thetime to express their views to the government and who have offered GPG theirsupport over this issue.' " J R RussellCompany Secretary 17 May 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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