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

 


IRD Revisits Rule That Backdates Tax Changes

Inland Revenue Revisits Rule That Backdates Tax Changes

MEDIA RELEASE
04 June 2004

INLAND REVENUE REVISITS RULE THAT BACKDATES TAX CHANGES FOR HOME-BASED CHILDCARE PROVIDERS

Inland Revenue today announced that a decision to backdate a change in the tax obligations for home-based childcare providers, will not apply to all providers.

In response to concerns raised by some childcare providers, Inland Revenue today announced that the change will apply retrospectively only to those who will benefit from that. For others, it will apply moving forward.

Commissioner of Inland Revenue David Butler said: "Backdating this is a positive measure for most childcare providers. Those who may have been expecting to file a return, now won't have to. However, there are some people who will be disadvantaged if this is backdated. That is not our intention, and we have agreed that where people will benefit, the new rules can apply to future income years, without going back to April 2003."

Mr Butler said: "These changes were designed to create a level playing field across the industry. Unfortunately, we didn't work out all the implications before deciding to backdate it. We expect that by moving quickly to solve the problem, we have given certainty and reassurance to all home-based carers affected."

ENDS

BACKGROUND NOTES

1. The determination referred to, allows childcare providers to use standard costs when claiming deductible expenses, rather than having to keep detailed records of their own. It reduces their compliance costs, and so is a taxpayer-friendly measure.

2. Inland Revenue's intention to introduce such a measure was flagged back in 2002, and was enacted in legislation in November 2003. The legislation provided for the application date to be set by the Commissioner of Inland Revenue.

3. Throughout 2003, Inland Revenue consulted extensively across the childcare industry about the levels of these costs. These cost levels were agreed by the industry. The May Tax Information Bulletin restated those levels.

4. The standard costs set by Inland Revenue are generous and were agreed by the childcare industry. It is expected that the tax imposition for most of the providers affected, will be nil or minimal.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news