Parliament

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

 

Tax Bill passes third reading

19 June 2014

Tax Bill passes third reading

Revenue Minister Todd McClay welcomed the passage of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill through Parliament today, saying it would “help support business growth and innovation”.

“As part of the Government’s work to ensure that tax law remains fit for purpose, the new legislation introduces a range of practical measures to clarify the tax rules for businesses, remove distortions in the existing rules and make sure everyone pays their fair share of tax,” Mr McClay says.

The Bill clarifies the tax treatment of employer-provided accommodation, accommodation allowances and other payments provided to employees as reimbursement for expenses.

“These new rules will help both employers and employees determine where to draw the line between what is taxable and what is not when payments are linked to business travel, secondments and projects.”

“This added certainty will be welcome news to those involved in the rebuild of Christchurch.”

“When an employee is expected to work away from their normal place of work on a capital project that is part of the earthquake recovery, employer-provided accommodation and payments to cover accommodation expenses will be tax-exempt for up to five years.”

A special rule is included for ministers of religion that caps the taxable value of accommodation at 10 per cent of their remuneration, reflecting longstanding practice. Defence force personnel also have the unique nature of their accommodation arrangements recognised.

Most of the changes to the employee allowances rules will apply from 1 April 2015, and in some cases sooner, including those specific to the Canterbury earthquake recovery work, which will apply from 4 September 2010, the date of the first earthquake.

“The Bill also provides deregistered charities with greater certainty around the tax consequences of deregistration and ensures that donors who have claimed tax relief on donations to charities which are later deregistered will not generally see this tax relief reversed.”

“Other measures help support business growth and innovation, such as clarifying the rules and dealing with distortions arising from the current ‘black hole’ tax treatment of certain types of expenditure.”

A suite of technical changes also make the tax rules easier to understand and apply, while there are measures to ensure everyone pays their fair share of tax including changes to thin capitalisation rules.

“Finally, this legislation provides our financial institutions with the appropriate legal framework to comply with the United States FATCA legislation and the intergovernmental agreement signed between New Zealand and the US last week.”

“This legislation is another important step in the Government’s ongoing programme to ensure that the tax system operates efficiently, and is flexible enough to fairly deal with issues such as the ongoing Christchurch rebuild,” Mr McClay says.
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On DHB Deficits And Free Trade

Currently the world is looking on aghast at the Trump administration’s plans to slash Obamacare, mainly in order to finance massive tax changes that will deliver most of their gains to the wealthy. Lives will be lost in the trade-off. Millions of Americans stand to lose access to the healthcare they need.

Spot the difference with New Zealand, where DHBs are under intense pressure to reduce deficits within a climate of chronic underfunding. More>>

 
 

Greens' Response: Slum-Like Rentals Exposed In Renting Review

“...The grim findings of the review are a wakeup call about the true state of rentals in this country. Too many renters are festering in slum-like conditions under the thumb of landlords who have largely unchecked powers and ignore tenants’ complaints when it suits them.” More>>

ALSO:

Gordon Campbell: On The Life And Times Of Peter Dunne

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>

ALSO:

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election