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

 


Second reading for tax bill providing clarity


Hon Todd McClay
Minister of Revenue

27 May 2014 Media Statement

Second reading for tax bill providing clarity

Revenue Minister Todd McClay says that the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill, which passed its second reading today, is an example of the Government’s focus on coherence and fairness in the tax system.

“Businesses require fairness and certainty from the tax system,” Mr McClay says.

A recent tax complexity survey of Asia-Pacific countries found that New Zealand’s tax policies are generally seen as straightforward, consistent and predictable.

“This Bill continues with the objective of bringing greater clarity to the tax rules and making them easier for businesses and other taxpayers to understand and comply with.”

The main areas of concern addressed in the Bill are employer-provided accommodation, allowances and payments, particularly when they are linked to business travel, secondments and projects.

“The proposals in this bill aim to provide practical rules to help determine where to draw the line between what is taxable and what is not.”

Furthermore, the Bill provides New Zealand financial institutions with an appropriate legal framework to follow when complying with the inter-governmental agreement (IGA) with the United States in relation to its Foreign Account Tax Compliance Act (FATCA).

The Bill also contains measures to address the current non-deductible ‘black hole’ tax treatment of certain items of business expenditure. The changes proposed will clarify the tax treatment of certain company administration costs, and allow a deduction for expenditure on abandoned applications for patents, resource consents and plant variety rights.

Proposals announced in Budget 2014 will make further improvements to the R&D rules and these will be included in a future tax bill.

“New Zealand is a good place to do business, in part because our laws are routinely maintained to give the business sector and individuals the clarity and certainty they need to fulfil their tax obligations,” Mr McClay says.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Post-Cab Press Conference: Foreign Buyers Register, TPP And Serco

At a press conference today in Wellington, John Key discussed the foreign buyers register as well as the TPP and Serco. Key was questioned on whether a stamp tax might be used as a tool to deal with foreign buyers. More>>

ALSO:

Lyndon Hood Satire: Serco To Outsource Prison To Public Sector

In response to high-profile failings, multinational omnicorporation Serco will introduce public management in its prison system. Serco's New Zealand manager, speaking on condition of anonymity, has announced plans for managers from the Department of Corrections to run the Mt Eden Correctional Facility. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news