Businesses missing out on off-road fuel duty refund
NZIFDA: Businesses missing out on up to $12.8 million off-road fuel duty refund.
Up to 50,000 businesses not claiming their share on an average $2,000 in rebates are also about to miss out on some of their off-road fuel duty claim because of an unfair tax penalty says Michael Levertoff, CEO, NZIFDA.
Businesses need to ensure they have submitted their April 2013 – June 2013 claim by 30 September or they will be penalised 10% for late filing of their claim, and this is grossly unfair, says Levertoff.
“The IRD pays use of money interest to taxpayers on money it holds for collection, but the NZTA does not. Instead it penalises businesses by charging a late filing fee. I question how does late filing cost the Government? Surely the Government has earned some interest on this money held.”
He is equally concerned that as much as $16 million of unclaimed fuel duty which is owed to up to 50,000 businesses across New Zealand is about to expire.
Mr Levertoff questions this: “Why does legislation stipulate a two year expiry date on claims, when business people can evidence up to seven years of receipts?”
The amount due to expire is much less than the $40 million he estimates has expired since 2006 because of the two-year expiry rule built into legislation, which makes no sense, says Levertoff.
“On-road fuel duty is on the increase over the next three years, which adds costs to businesses who need to use fuel an off-road capacity. It’s time the Government took a closer look at the fuel duty legislation and make the necessary changes,” Levertoff says.
NZIFDA prepares and submits off-road fuel duty claims for approximately 400 businesses and farmers. To date NZIFDA has prepared 856 claims totalling $243,466.50, and has recovered $72,975.58 for clients of NZIFDA.