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

 


Tax pooling to become more taxpayer friendly

Hon Todd McClay
Minister of Revenue

3 July 2014 Media Statement

Tax pooling to become more taxpayer friendly

Revenue Minister Todd McClay has signalled changes to tax pooling rules will mean that taxpayers can use tax pooling arrangements to pay any interest owed as a result of a tax dispute or an amended tax assessment.

Tax pooling assists businesses by making it easier for them to plan for changes in tax obligations. The current rules allow taxpayers to withdraw funds from a tax pool to cover the tax owed but not any interest that might be due. This can result in further interest accruing on the remaining amount which was not the original intention of the legislation.

“This decision will be welcomed by the tax advisory community who were consulted during the process and have been seeking this amendment for some time,” Mr McClay says.

“For businesses, a key concern is certainty in their tax affairs.”

“The current situation is contrary to the original principle of tax pooling and has a real impact for a growing number of taxpayers who are either in dispute with the Inland Revenue or subject to an amended tax assessment.”

“Meeting tax obligations can present problems for many businesses as a result of timing and assessment issues. Tax pooling rules can be helpful in allowing businesses to pool their tax payments with those of other businesses, through commercial intermediaries.”

To ensure that taxpayers have certainty the Government proposes to introduce an amendment in the next available tax bill to apply retrospectively from today’s date.

“The amendment will help ensure that the pooling regime continues to be helpful for New Zealand businesses and will allow them to conduct their tax affairs with certainty,” Mr McClay says.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news