Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Call To Abandon FBT

Government's proposed review of Fringe Benefit Tax applying to motor vehicles this year should be foregone and the tax simply abandoned altogether, the Employers & Manufacturers Association (Northern) says.

"There is no longer any reason to keep FBT," said Alasdair Thompson, EMA's chief executive.

"Calculating the tax and collecting it represents a substantial compliance cost for business, especially for SME's.

"All employee benefits such as company vehicles, low interest loans, low rents on houses, and health insurance should be taxed as personal income and absorbed into PAYE tax. This would immediately simplify the tax system and reduce compliance costs.

"While the change would involve employers paying their staff more to cover the tax on fringe benefits, they would then no longer have to pay the direct cost of FBT nor involve themselves in the costs of compliance.

"Government's revenues would be unaffected.

"The tax rules applying to these various categories of rewards and remuneration currently treated as FBT are now well known and should no longer be treated separately.

"If this suggestion were adopted several recommendations from the Ministerial Panel on Business Compliance Costs would be addressed straight away."

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>