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 Winston Peters’ Latest Bout Of Immigrant Bashing

So in the latest 3News-Reid Research poll, New Zealand First and the Conservatives have been the big winners. It is only one poll, but rather than cannibalising each other’s vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist...

Poll fixation though, is a symptom of horse race journalism. To date, the focus has been on the poll numbers for New Zealand First – at 6.3% in this latest poll – and the power that this puts in Peters’ hands. Few are questioning how he’s got to this happy place, and what it says about the mood of the electorate. Yet as sure as night follows day, Winston Peters is once again peddling bile at the immigrants in our midst. More>>

 

Parliament Today:

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

    Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

    ALSO:

    Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

    This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

    Earlier:

    Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

    National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news