Government’s tweaks to business tax a fantastic initiative
23 SEPTEMBER 2019
FOR IMMEDIATE RELEASE
Amending the rules on black hole expenditure and loss continuity shows excellent judgment from the Government, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union spokesman Louis Houlbrooke says, “New Zealand businesses are taxed very highly compared to the rest of the OECD, which holds back how quickly our economy grows. Allowing businesses to deduct expenditure from planned but not completed projects and making it easier to bring tax losses forward to benefit shareholders in future years are good opportunities to change that track record. The Revenue Minister should be applauded for these changes.”
“Just a week after we called on the Government to amend loss continuity moves, the Revenue Minister has sprung into action. The proposed changes will be especially welcome in the start-up sector. Tech companies tend to burn cash very quickly during the growth phase, causing them to build up significant tax losses. Making it easier for those firms to carry those losses forward should encourage growth and make New Zealand more attractive for start-ups.”