Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Govt moves on taxpayer financial relief, loopholes

3 December 2001 Media Statement
Govt moves on taxpayer financial relief, loopholes, compliance costs

Legislation introduced today will give the IRD greater flexibility in dealing with taxpayers’ debt problems, provide fairer instalment arrangements for repaying debt, and clarify what constitutes ‘serious hardship.’

Revenue Minister Michael Cullen said the changes were a response to concerns in the Finance and Expenditure Committee 1999 inquiry into the powers and operations of Inland Revenue that taxpayers were getting into uncontrollable tax debt.

"The new rules seek to strike a balance between being too lenient and too harsh as both discourage voluntary compliance with the law.

"The bill also closes a loophole that allows petroleum miners to claim tax deductions for more than they invested. That change comes into effect from today. Another revenue protection measure in the bill, relating to unit trusts, was announced last month," Dr Cullen said.

Other major features of the Taxation (Relief, Refunds and Miscellaneous Provisions) Bill are:
- new rules for the transfer of overpaid tax within a taxpayer's account or to another taxpayer;
- changes to prevent the over-taxation of unit trusts;
- clarification of holiday pay tax issues when businesses are sold;
- removal of the potential double impost of GST under certain warranty arrangements with non-residents, to assist importers of motor vehicles and other goods under warranty;
- clarification of the law to ensure that charities and other non-profit bodies can claim GST refunds on all their activities except exempt supplies, such as the sale of donated goods and services, thus creating greater certainty and reducing compliance costs;
- further measures for simplifying the tax system and reducing taxpayer compliance costs.

Full information on these and other matters in the bill can be found in the commentary published on the website of the Policy Advice Division of Inland Revenue at www.taxpolicy.ird.govt.nz.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news