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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news