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

 

PARLIAMENT TODAY:

Flyover Over: NZTA Not Appealing Flyover Decision

The NZ Transport Agency has decided not to appeal the High Court’s Basin Bridge decision, and says the High Court’s findings provide valuable clarity to help guide the development of future infrastructure projects throughout the country. More>>

ALSO:

Developing Crown Land: Government, Auckland Iwi Reach Agreement

The government has reached agreement with Ngati Whatua and other Auckland iwi over developing 500 hectares of excess land in Auckland for private housing which had been under High Court challenge. More>>

ALSO:

Gordon Campbell: On Maurice Williamson

Maurice Williamson seems to have been granted an annual licence to embarrass the National Party, and its that time of year again. Also as per usual, Williamson’s recent exercise in sexism and homophobia has passed by with barely a murmur from his leader. More>>

ALSO:

Green Climate Plan: Shaw Launches 40% Emission Cut Target

Green Party co-leader James Shaw has announced an emissions target initiative for 40% reduction by 2030. He said agriculture has to long been used as a reason for inaction, a roadblock to action... He proposed a tax of 8 cents per kilo of milk. More>>

ALSO:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news