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


New law brings tax debt relief

New law brings tax debt relief, greater certainty for taxpayers

Legislation enacted today will provide relief for many people who get into tax debt, introduce fairer instalment arrangements for paying off tax debt, and give Inland Revenue greater flexibility in dealing with taxpayers' debt problems.

"The new Taxation (Relief, Refunds and Miscellaneous Provisions) Act clarifies, for both the public and Inland Revenue, the appropriate treatment for taxpayers who are finding it difficult to pay their tax bills," Revenue Minister Michael Cullen said.

"The problem of spiralling tax debt was a recurring theme in the findings of the Finance and Expenditure Committee's 1999 inquiry into the powers and operations of Inland Revenue. This goes a long way towards meeting those concerns, and complements reductions in late payment penalties legislated for last year.

"Underlying these changes is the principle that tax laws that are too lenient or too harsh discourage voluntary compliance, which is the backbone of the modern tax administration. The new law strikes a sensible balance," Dr Cullen said.

The new Act also:
* introduces comprehensive new rules governing the transfer of overpaid tax within a taxpayer's account or to another taxpayer, changes that give taxpayers greater certainty;
* removes the risk that warranty agreements by offshore warrantors will attract GST twice, a change that is particularly important to importers of motor vehicles and other goods under warranty;
* clarifies the law relating to the tax treatment of wage-related provisions when a business is sold and employees are transferred;
* introduces changes to prevent the over-taxation of widely held unit trusts and "Category A" group investment funds, resolving a longstanding tax problem for the unit trust industry;
* introduces further measures aimed at simplification of the tax system and reduction of tax-related compliance costs;
* clarifies the law to ensure that charities and other non-profit bodies can claim GST refunds on all their activities except exempt activities, such as the sale of donated goods.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news