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.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Key In NY: Prime Minister Addresses United Nations

Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


Gordon Campbell: On The Lack Of Accountability Over Philip Smith

In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


More On Corrections

Gordon Campbell: On Putin’s Diplomatic Coup Over Syria

There’s a simple historical precedent for what is occurring in Syria. During WWII, the Allies joined forces with a known butcher and tyrant – Joseph Stalin of the Soviet Union – in order to defeat a greater evil, Nazi Germany… More>>


Key 'Didn't Know': Brownlee Seeks Pandas In China

While Defence Minister Gerry Brownlee is in China pushing a taxpayer funded deal to bring two pandas to New Zealand, the country’s military look set to be hit with a pay freeze, Opposition Leader Andrew Little says. More>>


Scoop Business: GCSB Willing To Extend Cyber-Attack Programme To Local ISPs

The Government Communications Security Bureau’s ‘Cortex’ cyber-security programme has been successful in helping identify and mitigate a series of cyber attacks since its introduction and an extension to cover local internet service providers is still on the cards... More>>


Gordon Campbell: On The Chris Brown Furore

Thank goodness Dame Tariana Turia has been able to inject a bit of common sense into the Chris Brown visa issue – her argument being that forgiveness has a place in this decision, and there is an opportunity here that should be taken... More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news