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

Gaza.Scoop: UNRWA School, Ambulances Attacked - Gaza MOH

The Ministry of Health Gaza expresses its horror and outrage at the latest Israeli massacre moments ago at an UNRWA school sheltering displaced persons in Beit Hanoun. Ten people have been killed and there is a large number of wounded. More>>

ALSO:

Gordon Campbell:
On Gaza And Burning The Israeli Flag

One of the selling points in New Zealand’s campaign for a temporary seat on the Security Council is that we have a pluckily independent voice to offer on international conflicts.

This image is not entirely self-delusional. When we did occupy a temporary UN Security Council seat in the 1990s, New Zealand was forthright about the need for the international community to actively respond to the Rwanda genocide. On April 14, 1994, New Zealand, Nigeria and the Czech Republic were the only nations to call for a forceful UN intervention to halt the killings. It was a proud moment in the diplomatic record of the Bolger government.

What then, is the current National government doing with respect to the slaughter in Gaza? More>>

 

Parliament Today:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news