Main Page | Newsletter | Sailing calendar | America's Cup | Glossary

NZ sailors fight superyacht tax

Auckland's Viaduct Basin is already filling up with superyachts

AUCKLAND, New Zealand -- Leaders of the New Zealand Marine Export Group (Marex) hope to halt plans by the national Inland Revenue Department (IRD) to tax the earnings of superyacht crews visiting the country for the America's Cup series.

A report in the New Zealand Herald suggested the 'pay-as-you-earn' tax would cripple the potential benefit to the country's economy by more than NZ$100 million.

Peter Busfield, chief executive of Marex, said there was more to gain by servicing the needs of visiting superyachts and encouraging owners to see New Zealand as a superyacht destination for the future than the potential revenue in income taxes, particularly if the Cup was lost.

MORE STORIES Selling the superyachts at Antigua

During the last America's Cup in 2000, government statistics showed that visiting superyachts spent around NZ$180 million in New Zealand on docking fees, supplies and shore services such as car hire and restaurants. A further NZ$127 million was spent with the local marine industry on refitting and repairs.

Almost 1,200 non-residents are expected in Auckland to work with the superyachts and the Cup syndicates during the next America's Cup. The IRD say that non-residents have always been taxed on their earnings whilst in the country.

About 100 superyachts are expected to visit New Zealand during the next America's Cup.

A visiting superyacht crew told the Herald that they would not be coming back if they had to pay taxes. "We work offshore and whatever facilities we use we pay for," he said, stressing that local sales taxes are levied on anything they buy ashore.