title: Explorations of structure and choice in taxing capital gains: New Zealand tax experts' perspectives

authors: Cheng, Alvin Man Hung

subjects: Capital gains tax

abstract: This study explores the key issues, aspects, and attributes concerning capital gains tax (CGT) to enable the formulation of policy guidelines that might be used if a CGT were considered in New Zealand. It contends that the development of the New Zealand’s policy on taxing capital gains has continued in a somewhat ad hoc and inconsistent fashion. The lack of a uniform approach to capital gains taxation has resulted in detailed, but complex, legislation which leads to “policy inconsistencies and unintended incentives built into the tax structure” (Oliver, 2001, pp. 80 – 81). The study bridges the divide between theoretical analysis of CGT and implementation issues on operating a CGT. It attempts to address one primary research question and an associated secondary question. The primary research question is: should capital gains be taxed more comprehensively than at present? As a start, it examines the two important issues surrounding income definition and the capital/income distinction. In this regard, the research first attempts to identify the definition(s) of capital gains from the New Zealand perspective(s). This is followed by investigating the key areas of the tax system in order to seek the best way of taxing capital gains. This study also attempts to address the secondary research question, i.e., why (or why not) do the tax experts favour (or oppose) a comprehensive CGT? In this respect, this study identifies 23 factors/issues that are related to the tax experts’ attitudes towards a particular form of a CGT model (i.e., current hybrid approach, a realisation-based CGT or an accrual-based CGT). A mixed-methods design has been adopted in this study involving both a quantitative (survey) and a qualitative (interview) method in analysing the data to determine the tax experts’ overall perceptions of a CGT in New Zealand and the CGT adoption factors which influenced them. One important finding of the comparative analyses was that all tax experts generally agreed that the lack of a comprehensive CGT could provide more significant tax planning opportunities. However, many tax experts did not support the comprehensive income concept as they disagreed with the benefits derived from the gains in horizontal equity through adopting a CGT. This study has identified several important policy issues and reviewed their implication for the adoption of a CGT in New Zealand. The finding of the study revealed that the tax experts strongly supported the exemption of the gains on disposal of a taxpayer’s main residence and the tax preference for inflation adjustment. Another important policy issue is the implementation of an accrual-based CGT. Most tax experts considered a realisation-based CGT would be better than an accrual one. In particular, they were concerned about the liquidity problems and the compliance costs involved in an accrual-based CGT regime i.e., the annual valuation of all assets. These findings represent a first step towards a theoretical CGT framework. It is hoped that the knowledge gained in this study would give a greater understanding into the practical decision-making process that could result in a better public acceptance for a tax reform.

text: Explorations of structure and choice in taxing capital gains: New Zealand tax experts' perspectives This study explores the key issues, aspects, and attributes concerning capital gains tax (CGT) to enable the formulation of policy guidelines that might be used if a CGT were considered in New Zealand. It contends that the development of the New Zealand’s policy on taxing capital gains has continued in a somewhat ad hoc and inconsistent fashion. The lack of a uniform approach to capital gains taxation has resulted in detailed, but complex, legislation which leads to “policy inconsistencies and unintended incentives built into the tax structure” (Oliver, 2001, pp. 80 – 81). The study bridges the divide between theoretical analysis of CGT and implementation issues on operating a CGT. It attempts to address one primary research question and an associated secondary question. The primary research question is: should capital gains be taxed more comprehensively than at present? As a start, it examines the two important issues surrounding income definition and the capital/income distinction. In this regard, the research first attempts to identify the definition(s) of capital gains from the New Zealand perspective(s). This is followed by investigating the key areas of the tax system in order to seek the best way of taxing capital gains. This study also attempts to address the secondary research question, i.e., why (or why not) do the tax experts favour (or oppose) a comprehensive CGT? In this respect, this study identifies 23 factors/issues that are related to the tax experts’ attitudes towards a particular form of a CGT model (i.e., current hybrid approach, a realisation-based CGT or an accrual-based CGT). A mixed-methods design has been adopted in this study involving both a quantitative (survey) and a qualitative (interview) method in analysing the data to determine the tax experts’ overall perceptions of a CGT in New Zealand and the CGT adoption factors which influenced them. One important finding of the comparative analyses was that all tax experts generally agreed that the lack of a comprehensive CGT could provide more significant tax planning opportunities. However, many tax experts did not support the comprehensive income concept as they disagreed with the benefits derived from the gains in horizontal equity through adopting a CGT. This study has identified several important policy issues and reviewed their implication for the adoption of a CGT in New Zealand. The finding of the study revealed that the tax experts strongly supported the exemption of the gains on disposal of a taxpayer’s main residence and the tax preference for inflation adjustment. Another important policy issue is the implementation of an accrual-based CGT. Most tax experts considered a realisation-based CGT would be better than an accrual one. In particular, they were concerned about the liquidity problems and the compliance costs involved in an accrual-based CGT regime i.e., the annual valuation of all assets. These findings represent a first step towards a theoretical CGT framework. It is hoped that the knowledge gained in this study would give a greater understanding into the practical decision-making process that could result in a better public acceptance for a tax reform.

year: 2010

title: Enhancement of "flavours" through enzymatic release of glutamate

authors: Juwono, Joshua

abstract: The sensory characteristics of food, in particular the flavours of food, play a very crucial role in the food industry. It is often what consumers associate most from food, and it is therefore crucial for food manufacturers like The Tatua Co-operative Dairy Company to produce flavour ingredients that are unique and of the highest quality.  
The Dairy Flavour Ingredients Business Unit at Tatua produces a range of dairy flavour ingredients including Butter, Cream and Milk, and Cheese Flavours. Tatua exports most of their flavour products worldwide to various food manufacturers, enhancing the flavour of the products that such manufacturers produce. Umami or savouriness is one of the five primary tastes. It is one of the most important flavour characteristic in dairy flavourings. In particular, umami is most needed in many of the different cheese flavourings produced by Tatua.  
This project focuses on optimising the release of glutamate from casein. Liberated glutamate with a commercial name HCP337 is used as a flavour enhancer, increasing the umami of the dairy flavourings that Tatua makes. Alternatively, the addition of monosodium glutamate (MSG) can also increase the umami of the flavours that Tatua makes, however this is not possible due to a couple of reasons: MSG has a negative reputation in the consumers’ mind, as many believe consumption of MSG can cause negative health effects; another reason is that addition of MSG would prevent Tatua from labelling their products as “natural”. Thus, the glutamate used for Tatua’s flavour ingredients is derived from the proteolysis of casein.  
Currently, the problem is that very little free glutamate is present in the HCP337 product even after a very long proteolysis. Therefore, the purpose of this project is to comprehensively examine the biochemistry of glutamate release in order to find the optimum proteolysis condition and use this knowledge to optimise the current process, increasing glutamate release. 
Three techniques were developed over the initial part of the study to quantify glutamate, glutamine, and pyroglutamic acid. A thorough set of samples from the HCP337 production process were then characterised. We found that indeed there was low glutamate content in the HCP337 product, and there was pyroglutamic acid in significant amounts. Stability tests of both glutamate and glutamine showed that glutamate is stable and not affected by the processing conditions. On the other hand, glutamine is very unstable and converted into pyroglutamic acid spontaneously under the processing conditions.  
With this information, various tests were performed with the focus of maximising glutamate yield from casein. These tests included: testing the proteolytic capacity of new and different enzymes at differing pH values with the hope of finding a better and more suitable enzyme at liberating glutamate from casein, the use of different acidifying agents in the HCP337 production process, and the screening of glutaminase activity within the new enzymes. The presence of glutaminase may further increase the glutamate yield, as glutaminase will convert the free glutamine released into glutamate instead of it spontaneously forming pyroglutamic acid. 
In summary, this study demonstrated that the current HCP337 production process is not designed to optimally release glutamate from casein. Altering the pH and enzyme combinations during hydrolysis did not appear to be effective strategies to increase glutamate release from casein. More tests on more enzyme should be conducted in the future in order to find enzymes that are most effective at releasing glutamate under the appropriate production process.

text: Enhancement of "flavours" through enzymatic release of glutamate The sensory characteristics of food, in particular the flavours of food, play a very crucial role in the food industry. It is often what consumers associate most from food, and it is therefore crucial for food manufacturers like The Tatua Co-operative Dairy Company to produce flavour ingredients that are unique and of the highest quality.  
The Dairy Flavour Ingredients Business Unit at Tatua produces a range of dairy flavour ingredients including Butter, Cream and Milk, and Cheese Flavours. Tatua exports most of their flavour products worldwide to various food manufacturers, enhancing the flavour of the products that such manufacturers produce. Umami or savouriness is one of the five primary tastes. It is one of the most important flavour characteristic in dairy flavourings. In particular, umami is most needed in many of the different cheese flavourings produced by Tatua.  
This project focuses on optimising the release of glutamate from casein. Liberated glutamate with a commercial name HCP337 is used as a flavour enhancer, increasing the umami of the dairy flavourings that Tatua makes. Alternatively, the addition of monosodium glutamate (MSG) can also increase the umami of the flavours that Tatua makes, however this is not possible due to a couple of reasons: MSG has a negative reputation in the consumers’ mind, as many believe consumption of MSG can cause negative health effects; another reason is that addition of MSG would prevent Tatua from labelling their products as “natural”. Thus, the glutamate used for Tatua’s flavour ingredients is derived from the proteolysis of casein.  
Currently, the problem is that very little free glutamate is present in the HCP337 product even after a very long proteolysis. Therefore, the purpose of this project is to comprehensively examine the biochemistry of glutamate release in order to find the optimum proteolysis condition and use this knowledge to optimise the current process, increasing glutamate release. 
Three techniques were developed over the initial part of the study to quantify glutamate, glutamine, and pyroglutamic acid. A thorough set of samples from the HCP337 production process were then characterised. We found that indeed there was low glutamate content in the HCP337 product, and there was pyroglutamic acid in significant amounts. Stability tests of both glutamate and glutamine showed that glutamate is stable and not affected by the processing conditions. On the other hand, glutamine is very unstable and converted into pyroglutamic acid spontaneously under the processing conditions.  
With this information, various tests were performed with the focus of maximising glutamate yield from casein. These tests included: testing the proteolytic capacity of new and different enzymes at differing pH values with the hope of finding a better and more suitable enzyme at liberating glutamate from casein, the use of different acidifying agents in the HCP337 production process, and the screening of glutaminase activity within the new enzymes. The presence of glutaminase may further increase the glutamate yield, as glutaminase will convert the free glutamine released into glutamate instead of it spontaneously forming pyroglutamic acid. 
In summary, this study demonstrated that the current HCP337 production process is not designed to optimally release glutamate from casein. Altering the pH and enzyme combinations during hydrolysis did not appear to be effective strategies to increase glutamate release from casein. More tests on more enzyme should be conducted in the future in order to find enzymes that are most effective at releasing glutamate under the appropriate production process.

year: 2016

title: Beyond Pākehā paralysis: Exploring the journeys & experiences of Pākehā allyship in psychology

authors: Stolte, Ottilie Emma Elisabeth

abstract: The monocultural foundation of psychology is interwoven with the colonial history of Aotearoa New Zealand. Not all of the mahi of decolonising psychology is the responsibility of Māori. In Aotearoa, there is currently less literature around the development of racial justice allyship and how Pākehā (as the dominant majority) can work towards honouring Te Tiriti o Waitangi. This paper draws on interviews with three Pākehā allies who have taken actions towards greater inclusion of Māori and raising awareness of systemic injustices and racial disparities. The objective of this paper is to document the understandings shared by these ‘reluctant allies’, focusing on the challenges, possibilities, and suggestions for a more culturally relevant psychological education and practice for Aotearoa New Zealand.

text: Beyond Pākehā paralysis: Exploring the journeys & experiences of Pākehā allyship in psychology The monocultural foundation of psychology is interwoven with the colonial history of Aotearoa New Zealand. Not all of the mahi of decolonising psychology is the responsibility of Māori. In Aotearoa, there is currently less literature around the development of racial justice allyship and how Pākehā (as the dominant majority) can work towards honouring Te Tiriti o Waitangi. This paper draws on interviews with three Pākehā allies who have taken actions towards greater inclusion of Māori and raising awareness of systemic injustices and racial disparities. The objective of this paper is to document the understandings shared by these ‘reluctant allies’, focusing on the challenges, possibilities, and suggestions for a more culturally relevant psychological education and practice for Aotearoa New Zealand.

year: 2025