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Tax change would help ANZ bank
Tuesday,
June 30, 2009
Officials of ANZ Amerika Samoa Bank testified this morning that an amendment to the tax law being proposed by the administration would allow the bank to access more capital for loans without having to pay a 30% withholding.
Daniel King, a tax counsel for ANZ Bank said ANZ would like to borrow surplus funds from ANZ’s subsidiary in Guam and passage of the proposed amendment would enable the bank to access the funds without being burdened with the withholding.
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ANZ Bank’s CEO David Whitby said the global financial crisis has made it more difficult to access capital and if the bank was to obtain funds from US brokers it would be faced with higher interest rates.
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CEO of Bank of Hawaii Hobb Lawson said BOH had no objections to the tax change being proposed. Representatives did raise concerns about whether the change would mean lost revenues for ASG. The committee had scheduled Tax Office Manager Melvin Joseph to testify however he is off island. The committee has decided to postpone discussion of the bill until Mr. Joseph returns.
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