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

 


Dunne: Govt to simplify financial arrangements rules

Hon Peter Dunne
Minister of Revenue

14 December 2012

Dunne: Govt to simplify financial arrangements rules

The Government will move to simplify the rules relating to financial arrangements that are agreements for the sale and purchase of property or services, Revenue Minister Peter Dunne announced today.

Mr Dunne said the changes reflect concerns expressed by a number of business taxpayers and their representatives over the past few years.

“The proposed changes will have a beneficial impact on business taxpayers who sell or buy property or services. They will be particularly welcomed by businesses who export and import capital equipment,” he said.

Taxpayers who prepare financial reports using International Financial Reporting Standards (IFRS) will now follow their accounting treatment for taxation purposes for almost all of these arrangements. The exception will be capital account transactions other than depreciable property. Other taxpayers will use simplified rules that will give similar results.

The amendments will apply from the 2013/14 income year. However the legislation will allow IFRS taxpayers to elect to apply the accounting treatment to new arrangements from the 2011/12 income year.

The changes will also validate the past treatment of arrangements which have effectively used methods allowed under the new rules.

Mr Dunne said that simplifying the rules was consistent with the Government’s objective of making it easier for customers to interact with government.

“The rule changes will mean lower compliance costs, increased technical compliance and for some, less volatility of taxable income from year-to-year,” he said.

The amendments will be included in the next available tax bill, with draft legislation expected to be released for comment in March 2013.

More technical details on the proposed rules and their application can be found in a fact sheet at www.taxpolicy.ird.govt.nz

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news