14 May 2002

A bill introduced today will raise the maximum rebate for donations to charities from $500 to $630 and will extend the corporate tax deduction to include a wider range of companies.

The legislation will also modernise the tax rules on organisations that manage Maori assets held in communal ownership.

"The present rules date from 1952 and are unnecessarily complex and restrictive so an update is long overdue," Revenue Minister Michael Cullen said.

"The rule changes will affect Maori authorities ranging from small trusts managing blocks of land to the Treaty of Waitangi Fisheries Commission. They will also simplify the income tax requirements for people who derive benefits from these organisations," Dr Cullen said.

Other major features of the Taxation (Annual Rates, Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Bill are:
- Further changes arising from the government's review of the taxpayer compliance and penalty legislation, including a new penalty on promoters of certain tax schemes.
- Further tax simplification measures aimed at small and medium-sized businesses.
- Changes clarifying the GST treatment of cross-border telecommunications.

"The Government had considered including in the bill the proposals arising from the recent issues paper on mass-marketed tax schemes but consultation indicated that further analysis is needed," Dr Cullen said.

Full information on matters in the Taxation (Annual Rates, Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Bill is available in the commentary on the bill published on the website of the Policy Advice Division of Inland Revenue at www.taxpolicy.ird.govt.nz.

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